Equity shareholders have proportional voting rights according to the paid-up capital of the company.

If in a given year no dividend can be declared, the equity shareholders lose the dividend for that year, it does not cumulate.

The dividend given to equity shareholders is decided by the Board of Directors according to the financial performance of the company.

The dividend given to equity shareholders is not fixed.

Holders of equity shares only enjoy equity, i.e., ownership in the company.

Shares that do not enjoy any preferential rights are equity shares.

The holders of preference shares can vote in any matters directly affecting their rights or obligations.

A preference share is one which carries two exclusive preferential rights over the other type of share, i.e., equity shares.

Articles of Association will contain some essential information about shares and share capital, like the classes of shares to be prescribed.

If the total capital of a company is 5 lakhs and such capital is divided into 5000 units of Rs 100/- each, then this one unit of amount 100 is a share of the company.

A share of a company is one of the units into which the capital of a company is divided.

The process of creating new shares is known as Allocation or allotment.

Issue of Prospectus Receiving Application Allotment of Shares are three basic steps of the procedure of issuing the shares.

The company follows the rules prescribed by Companies Act, 2013 while issuing the shares.

Shareholders can be either individuals or corporate.

Issue of Shares is the process in which companies allot new shares to shareholders.

The capital reserved by a company to be used in the event of winding up of the company is reserve capital.

When all shareholders pay their full amounts paid up capital and subscribed capital will be equal.

The amount of the subscribed capital called to from the shareholders is the called up capital which is less or equal to the subscribed capital.

Nominal or Registered Share Capital is the sum of money stated to the Memorandum of Association as the share capital of the company.

Authorized Share Capital is the stocks stated in the MOA or AOA.

Share capital is basically the contributions made by all the shareholders of a firm.

Share capital means the capital of a company dividend into shares.

The portion of the capital not yet called up by the company is ______.

One can sell one’s share of ownership rights to an interested buyer as the shares of a company are transferable.

Creditors cannot claim from the personal wealth of the shareholders.

In cases of losses, shareholders are not called upon to make good the losses.

Shareholders have no obligation to the company once they have paid full amount on the shares held by them.

Shareholders generally have limited liability, limited to the extent of unpaid value of shares held up.

The liability of shareholders of a company is different from the liability of the company.

Shareholders set the objectives of the company and appoint their representatives or agent (directors) to manage the affairs of the company on their behalf to pursue their objectives.

A company is owned (defacto) by a number of shareholders which is too large a body to manage the affairs of the company.

No shareholder has any right to any item of property owned by the company for he has no legal or equitable interests therein.

Members have no direct proprietary rights to the company’s property but merely their shares.

Company cannot be the property of the person who owns all the shares in the company, nor can it be considered to be his agent.

Since an incorporated company has a legal personality distinct from that of its members, a creditor of such a company has remedy only against the company and not against an individual shareholders.

A shareholder, if qualified as a chartered accountant, can be the auditor of the same company.

A company can buy shares or debentures of another company.

The nationality of the company does not depend upon the nationality of its shareholders.

Shareholders cannot be held liable for the wrong or misdeeds of the company.

Demat accounts are primarily for the online transaction of shares on a stock exchange.

Dematerialisation indicates the process of digitising physical shares and debenture certificates under one of the two depositories in India.

The non-resident Indian can open Demat accounts of repatriable types.

All residing Indian citizens are eligible to open regular Demat accounts.

As per SEBI regulations, all shares and debentures of listed companies have to be dematerialised in order to carry out transactions to any stock exchange from 31^st March, 2019.

Fixed price IPO can be referred to as the issue price that some companies not for the initial sale of their shares.

CDSL and NSDL are national share depositories incorporated by the markets regulator Securities and Exchange Board of India (SEBI).

Share depositories hold shares in an electronic form.

Fixed price IPO can be referred to as the issue price that some companies not for the initial sale of their shares.

An IPO is generally initiated to monetize the investment made by existing stakeholders.