Business Environment and Law-Share & Share Capital
Share & Share Capital
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Meaning of a Share. Section 2(46) defines a share “as a share in the share capital of a company and includes stock except where a distinction between stock and share is expressed or implied.
Share & Share Capital
Meaning of a Share. Section 2(46) defines a share “as a share in the share capital of a company and includes stock except where a distinction between stock and share is expressed or implied. A share signifies the following:
Meaning of a Share. Section 2(46) defines a share “as a share in the share capital of a company and includes stock except where a distinction between stock and share is expressed or implied. A share signifies the following:
1. The interest of a shareholder in
the company; the right to receive dividend, attend meetings, vote at the
meeting and share in the surplus assets of the company, if any, in the event of
the company, being wound up ;
2. The liability of the shareholder
in the company to pay calls on shares until fully paid up;
3. The right of the shareholder to
transfer the shares subject to the articles of association.
4. Binding covenants on the part of
the company as well as the shareholder, as given in the Articles of the
company.
Thus, a share of a company in the hands of a shareholder signifies a bundle of rights and obligations. A share is not a negotiable instrument.
Thus, a share of a company in the hands of a shareholder signifies a bundle of rights and obligations. A share is not a negotiable instrument.
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