share capital


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Related to share capital: share premium, Equity Share Capital

share capital

the money employed in a JOINT-STOCK COMPANY that has been subscribed by the SHAREHOLDERS of the company in the form of ORDINARY SHARES (equity) and PREFERENCE SHARES, and which will remain as a permanent source of finance as long as the company remains in existence. See also LOAN CAPITAL, CAPITAL GEARING, STOCK.

share capital

the money employed in a JOINT-STOCK COMPANY that has been subscribed by the SHAREHOLDERS of the company in the form of ORDINARY SHARES (equity) and PREFERENCE SHARES and that will remain as a permanent source of finance as long as the company remains in existence. The providers of share capital share in the (residual) profits of the company in the form of DIVIDEND payments paid out of profits. The dividends paid will tend to vary from year to year with profits earned, although some profits may be retained in the company and added to RESERVES to be used to finance the acquisition of further assets. In this regard shareholders differ from the providers of LOAN CAPITAL, who are rewarded by means of regular INTEREST payments. However, shareholders rank after the providers of loan capital both in terms of receiving current income payments and repayment of the capital sums subscribed in the event of company INSOLVENCY. See CAPITAL-GEARING.
References in periodicals archive ?
AS Tallink Grupp (TAL:TAL1T), an Estonian shipping company, reported on Tuesday that on 2 September 2019, the share capital reduction of the company was registered in the Commercial Register according to the resolutions adopted by the annual general meeting of shareholders on 23 May 2019.
As a result, the share capital of the Company has today, 30 July 2019, been increased with NOK 10,500,000 by issuance of 2,100,000 new shares, each with a nominal value of NOK 5, at the conversion price of NOK 10.00 per share.
For every Rs 100,000 of nominal share capital or part of Rs 100,000, up to Rs 10,000,000, a fee of Rs 500 for submission of documents electronically and Rs 1000 for submission of documents in physical form.
Reportedly, Eniro had applied in May 2019 at the Swedish Companies Registration Office for permission to reduce its share capital for transfer to unrestricted equity, in accordance with the decision at the AGM on 9 May 2019.
Dubai: Dana Gas said on Monday its share capital has increased after issuing incentive shares for employees.
Reportedly, this increase in its share capital is after an exercise of warrants and a share subscription by Alexion Pharmaceuticals Inc.
The reconstruction will reduce C and I Leasing's current outstanding share capital of 1.883 billion ordinary shares of 50 kobo each to 376.56 million ordinary shares of 50 kobo each.
If passed it would have allowed the board to issue up to 5% of the company's share capital for acquisitions or "other capital investment".
Purchase of 10% of the share capital in TF from the current shareholders for a consideration of 110,000 new issued shares in ROR at GBP 7.5 per share (USD 10.57), for a value of GBP 825,000 (USD 1.174m).
Summary: New Delhi [India], Mar 28 (ANI): The government of India on Wednesday appointed Ernst & Young LLP India (EY) as its transaction advisor for advising and managing the proposed strategic disinvestment of national carrier, Air India (AI) by way of transfer of management control and sale of 76 percent equity share capital of the airlines held by the government.
The Management Board of Software AG decided today to redeem 2,400,000 treasury shares which had been acquired by the company in previous years based on various buy-back authorizations and to decrease the share capital accordingly by EUR 2,400,000.
Drake & Scull International (DSI), a regional market leader in engineering and construction services, has won regulatory approval to reduce its share capital by 75 per cent and also to list 500 million new shares.