Skip to content

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.

  1. AEquity share capital and preference share capitalCorrect
  2. BEquity share capital and debenture capital
  3. CPreference share capital and reserve capital
  4. 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.

Did you get it right without looking?

One question tells you little. A timed set on Elements of Company Law shows your real accuracy, how long you take and where you lose marks.

More Elements of Company Law questions