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.
- With equal Rights
- With differential rights
- 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 :
- Issue of shares at par
- Issue of shares at a premium
- Issue of shares at a discount
- Issue of Sweat equity shares
- Issue of preference shares
- Issue of shares with differential rights.