Different Types of Share Capital

What are the different types of share capital? A public limited company may have different types of shares carrying varying rights and conditions. See below:

1) Authorised Share Capital - This is also known as registered capital. It is the maximum amount of capital that the limited company is authorised to issue to its shareholders. However, the maximum amount can be changed by some legal formalities.

2) Subscribed Capital - This is the amount of money that the investors agree to subscribe in return for their shares.

3) Issued Share Capital - This is the part of capital which has been alloted or issued to shareholders.

4) Called up Share Capital - This is the total amount of issued capital for which the holders of shares are required to pay.

5) Paid up Share Capital - This is the actual amount paid by the shareholders on called-up capital. The amount remaining unpaid on the called-up capital is known as "call in arrears".

* Next: Types of Preference Shares