TYPES OF

CAPITAL

Companies Act, 2013

 Team members

Harshal Agarwal PF2325-C020

Bhavya Dave PF2325-C011

Chirag Bhatter PF2325-C012

Keshav Kyal PF2325-C025

Khushi Shah PF2325-C026

Ashutosh Yadav GM 2325-003

 What is Capital

Broad concept

Critical component

According to Companies Act 2013

 TYPES OF CAPITAL

01 02 03
Nominal Capital Issued Capital Subscribed
Capital

04 05 06
Called-up Paid-up Capital Equity &
Capital Preference
Capital
 NOMINAL CAPITAL

Also known as Authorized Capital

Amount is specified in Article of Association

It is the maximum limit to which a company

can raise capital
 Issued
Capital
Section 2(50) of the Companies Act,
2013
Issued capital refers to the portion
of authorized capital that has been
offered and allotted to the
shareholders of a company.
 Example

Issued Capital Unissued Capital

The authorised share capital of Reliance
Industries Ltd for the FY 2023-24 is Rs INR
15,000 cr.
while the issued capital is only Rs 6,766.09
cr.
This means that Reliance Industries Ltd can
further call for the subscription of the
unissued portion of the share capital, which is
Rs 15,000 – Rs 6,766.09 = Rs 8,233.91 cr.
 Subscribed
Capital
● Section 2(86) of the Companies Act, 2013 defines
“subscribed capital” as such part of the capital which is for
the time being subscribed by the members of a company.

● Subscribed Capital represents the amount of capital that

shareholders commit to contribute to a company.
 Subscribed Capital
It is that part of the nominal capital which has actually been taken up by public and shareholders who have
agreed to give consideration in kind or in cash for shares issued to them.

Where shares issued for subscription are wholly subscribed for, issued capital would mean the same thing as
‘subscribed capital’. That part of issued capital which is not subscribed by the public is called ‘Unsubscribed
capital’. Subscribed capital cannot be more than issued capital.

If, say, 13,000 shares of Rs 100 each are offered to the public and the public applies for 12,000 shares, the
subscribed capital will be Rs 12,00,000.
Called Up Capital

Companies Act 2013, Section 2(15)

The Amount of Share Capital
Shareholders Owe, But have not Paid
is Referred to as Called -up Capital.
 Called Up Capital
Section 2(15) of Companies Act ,2013 - Called-up share capital is the portion of a company's share capital that
shareholders have agreed to pay for. It is the amount of money that shareholders are legally obligated to
contribute to the company in exchange for their shares. Called-up share capital is recorded on a company's
balance sheet as part of shareholders' equity.

Uncalled share capital is the portion of a company's share capital that shareholders have not yet been required to
pay for. It is the amount of money that shareholders may be called upon to pay in the future if the company
needs additional funds. Uncalled share capital is not recorded on a company's balance sheet until it is called up.
 Example

If The Board Calls for 12000 out of 15000 The Remaining Shares which are not called
Shares of 60 Per Share (60x12000)= 720000 is Known As Un-Called Capital.
Will be Called Up Capital (3000x60)= 180000
 Paid Up Capital
Paid up Capital is the total amount paid up on shares issued. It is equal to called
up capital less calls in arrears.

It is basically money that a company receives from shareholder in exchange of

shares.

For example- Let's say a company issues 100 shares with a par value of ₹10 each. If the
shares are sold for ₹15 each, then the paid-up capital would be ₹1500.
 CLASSES OF SHARE CAPITAL

Equity Share Capital Preference Share Capital

With differential voting rights as Carries Preferential w.r.t. payment of dividend

With Voting Rights
to dividend, voting or otherwise Rights and repayment of capital at
time of winding up
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