Share Issue
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Share Issue


A share is the interest of a member in a company. Section 2(84) of the Companies Act, 2013 (hereinafter referred to as Act) “share” means a share in the share capital of a company and includes stock. It represents the interest of a shareholder in the company, measured for the purposes of liability and dividend. It attaches various rights and liabilities.

Share, debentures or other interest of any member in a company shall be movable property. It shall be transferable in any manner provided for in the articles of association of the company. A member may transfer any “other interest” in the company in the manner provided in the articles. For example rights attached to a member in a guarantee company such as membership interest, suspension of membership or assignment of interest may be made transferable by making a provision in the Articles of the company.

Share capital can be of 3 types.

  1. With equal Rights
  2. With differential rights
  3. Preference shares


First issue of shares take place at the time of incorporation of a company.

Subsequent issue of shares of an existing company can be of the following types :

  1. Issue of shares at par
  2. Issue of shares at a premium
  3. Issue of shares at a discount
  4. Issue of Sweat equity shares
  5. Issue of preference shares
  6. Issue of shares with differential rights.