A share is one unit into which the total share capital is divided. Each share forms a unit of ownership
and is offered for sale so as to raise capital for the company. The shares any member in a company
are movable property transferable in the manner provided by the articles of the company. Face
value of a share is the par value of the share. It is also known as the Nominal value or denomination
of a share.
company. A share represents a fractional part of the share capital of the company. For example, if a
company has a share capital of Rs.5,00,000 divided into 50,000 shares of Rs.10 each and a person
who has taken 50 shares of the company is said to have a share of Rs.500 in the share capital of the
When total capital of a company is divided into shares, then it is called share capital. A joint stock
company raises its capital by issue of shares to finance its activities. The Memorandum of
Association of the company states the amount of capital with which the company is desired to be
registered and the number of shares into which it is to be divided. It constitutes the basis of the
capital structure of a company.
all share capital which is not preference share capital. Equity share capital can be
i) with voting rights; or
ii) with differential rights as to dividend or voting or any other right.