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Accounting for Share Capital 65 Termes Used in the Chapter 1. Joint Stock Company 16. Premium on Shares 2. Share Capital 17. Application Money 3. Authorised Capital 18. Minimum Subscription 4. Issued Capital 19. Calls on Shares 5. Unissued Capital 20. Calls in Arrears 6. Subscribed Capital 21. Calls in Advance 7. Subscribed and fully paid-up 22. Over subscription 8. Subscribed but not fully paid up 23. Under subscription 9. Paid-up Capital 24. Forfeiture of Shares 10. Reserve Capital 25. Reissue of forfeited shares 11. Shares 26. Buy-back of Shares 12. Preference Shares 13. Non-redeemable Preference Shares 14. Equity Shares 15. Issue of Shares for Consideration Other than Cash Summary Company: An organisation consisting of individuals called ‘shareholders’ by virtue of their holding the shares of a company, who can act as legal person as regards its business through board of directors. Share: Fractional part of the capital, and forms the basis of ownership in a company. Shares are generally of two types, viz. equity shares and preference shares, according to the provisions of the Companies Act, 2013. Preference shares again are of different types based on varying shades of rights attached to them. Share Capital of a company is collected by issuing shares to either a select group of persons through the route of private placements and/or offered to the public for subscription. Thus, the issue of shares is basic to the capital of a company. Shares are issued either for cash or for consideration other than cash, the former being more common. Shares are said to be issued for consideration other than cash when a company purchases business, or some asset/assets, and the vendors have agreed to receive payment in the form of fully paid shares of a company. Stages of Share Issue: The issue of shares for cash is required to be made in strict conformity with the procedure laid down by law for the same. When shares are issued for cash, the amount on them can be collected at one or more of the following stages: (i) Application for shares (ii) Allotment of shares (iii) Call/Calls on shares. Reprint 2026-27