receive a fixed rate of

dividend.

not be entitled to vote

in the shareholders'
annual general
meeting.

receive their dividends

Preference Shares Shares will not be
of profit before the
ordinary share dividend traded on the stock
(higher exchange
priority).

offer shares to business

Private Limited
receive capital before associates, friends and
Company
ordinary shareholders families
in the event the Ways to Raise Capital
company is closed
The company name will
down.
end with "limited" or
"ltd”.
- receive variable dividends each year.
Types of Limited
- be entitled to vote in shareholders' meetings with -
Companies The company name
one vote per share.
must end with "public
- be given their dividends of profit after the Ordinary Shares
limited company" or
preference share dividend
"plc."
- be the last to receive their share capital if the
company goes bankrup

The authorized capital

by the stock exchange
Definition:Dividends are
Public limited company must be greater than
paid to shareholders as
$50,000
a way of distributing
the profits of the
company.
The company can offer
its shares to the public
and its shares which are
the availability of
traded on the
profits
stock exchange

the availability of cash

to pay the dividend

Decisions if a company
whether it would be will be paying out a Dividends
better to keep the dividend based on:
Limited Companies
profits in the company
Authorized share
to allow it to grow
capital

whether the market

Called-up capital is the
price of the shares will
total amount of capital
be affected or not
a company has asked
Share Capital for from its
The Profit and Loss Appropriation Account and the preference and ordinary
Balance Sheet categorize year-end dividends as current shareholders.
liabilities because they represent pending payments to
shareholders, creating a short-term obligation for the
Paid-up capital is the
corporation.
part of the called-up
Issued share capital capital where money
Debenture holders are has actually been
liabilities of the received from the
company — NOT ordinary and preference
owners as it is with shareholders.
shareholders.

Calls in arrears the part of the

The interest must be called-up capital where money
paid regardless of the has still not been
profitability of the received from shareholders.
company.

Retained profit is the portion of earnings that

Debentures due to be isn't distributed (split) for reserves or dividends.
paid within a year are Retained Profit and It is carried over to the following year to
Debentures Reserves support future business plans and is recorded as
shown on the balance
sheet as CURRENT a balance on the profit and loss appropriation
IABILITIES. account.

Debenture holders have

no voting rights within
the company's
meetings.

Debenture holders are

repaid before any
shareholders in case
the company is closed