CSEET · Business Laws and Management · Elements of Company Law
Under the Companies Act, 2013, the share capital of a company limited by shares is of which kinds?
The share capital of a company limited by shares is of two kinds: equity share capital, which may carry voting or differential rights, and preference share capital, as provided in Section 43 of the Companies Act, 2013.
- AEquity share capital and preference share capitalCorrect
- BEquity share capital and debenture capital
- CPreference share capital and reserve capital
- DVoting capital and non-voting capital
Explanation
Section 43 states that share capital of a company limited by shares is of two kinds: equity share capital (with voting rights or with differential rights) and preference share capital. Debentures are not share capital, and the other pairings are not the statutory classification.
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