Share capital can be divided into the following classes:-
( I ) Registered or authorized capital :- According to the company legislation, the councilors of each share capital company have memorandum Under the capital clause, it is necessary to specify the maximum limit of capital of the company. This is the capital by which the company is amalgamated. This is called the authorized capital of the company. Due to the registration of the company with this capital, it is also called the registered capital of the company. This is the maximum limit of capital that can be issued by the company. This capital is divided into different types of shares. The share capital of each public company can be divided into equity and preference shares.
(ii) Issued capital :- Issued capital is that part of authorized capital which is issued to the public for the purpose of buying shares. Often companies do not issue their entire authorized capital in the beginning. According to the requirement of the company, some part of this capital is issued to the public. Capital can be obtained by issuing the remaining part from time to time in future. For example, if the company issues 20000 shares out of 50000 equity shares, then in this case the issued capital of the company will be Rs 2 lakh.
(iii) Subscribed capital :- When shares of a company are issued for purchase to the public, many persons, motivated by the opportunities for future growth of the company and the ability of the directors of the company, to buy shares of the company. Submit applications. Thus that part of the issued capital which has been taken by the public is called requested capital.
(iv) Called capital or (called-up capital) :- Called capital is that part of the allocation capital, which is sought from the applicants. Often companies do not ask for the amount of their shares at once. Some amount is demanded from the shareholders on application and some on allotment and some in the form of first, second and final call from time to time as per the requirement of the company.
(v) Uncalled capital :- Called capital is that part of the called capital which the company has not asked for from the shareholders.
(vi) Paid-up capital :- Paid-up capital is that part of the called-up capital which the shareholders have paid to the company. Thus paid-up capital is called paid-up capital. It happens that many shareholders are not able to pay the call amount demanded by the company due to their circumstances, such amount is called arrears or ‘call in arrear’.
(Vii) Reserve capital :- The accumulated capital is that part of the uncalled capital which cannot be called for during the life of the company.
