Table of Contents
- 1 What is the meaning of fully paid Ord shares?
- 2 Which means a bundle of fully paid up shares put together for convenience?
- 3 Is dividend payable on partly paid shares?
- 4 What are fully paid up bonus shares?
- 5 What are fully paid-up bonus shares?
- 6 What do you mean by subscribed but not fully paid-up shares?
- 7 Is share premium part of paid up capital?
- 8 What happens if application money received exceeds total amount payable on shares?
- 9 Can directors call upon shareholders to pay full amount due on shares?
- 10 Can a public company issue shares to the general public?
Key Takeaways. Fully paid shares are shares issued for which no more money is required to be paid to the company by shareholders on the value of the shares. Fully paid shares differ from partially paid shares, in which only a portion of the market value has been received by the company.
Fully paid-up shares are called Stock.
When the shareholders have paid all the call amount which of the following would be the same?
Paid up Capital
The remaining Rs. 3 may be collected from its shareholders as and when needed. Paid up Capital: It is that portion of the called up capital which has been actually received from the shareholders. When the shareholders have paid all the call amount, the called up capital is the same to the paid up capital.
Shareholders with partly paid shares have the same rights as fully paid shareholders, including the right to: dividend payments, vote at shareholders’ meetings, and. participate upon winding up of the company.
Fully paid bonus shares are those shares that are distributed at no extra cost in the proportion of the investors holding in the company.
Can I sell partly paid shares?
Yes, you can sell partly paid shares before the call date. Are partly paid shares tradable in the market? Yes, partly paid shares can be traded in the markets until they are suspended two days before the record date.
It is the amount of share capital issued by a company that is subscribed but the company has not received entire nominal (face) value of the share.
What is the maximum limit of premium on shares?
Maximum limit of Premium on shares is – No limit.
The share premium account represents the difference between the par value of the shares issued and the subscription or issue price. It’s also known as additional paid-in capital and can be called paid-in capital in excess of par value. This account is a statutory reserve account, one that’s non-distributable.
If application money received with an application exceeds the total amount payable on shares allotted, such an excess will have to be refunded even in the case where the applicant has agreed to get the excess application money treated as Calls in Advance. Let us assume, company issues equity shares of Rs 10 each payable as follows:—
What are the requirements for share application money?
The company can ask for the issue price of the share to be paid in full along with the application or it can be payable in installments as share application money, share allotment money, share first call, share second call and so on. The amount payable as application money must be at least 5 percent of the nominal amount of the share. 3.
After allotment, the directors can call upon the shareholders to pay the full amount due on shares in one or more installments as mentioned in the prospectus. The articles of a company usually contain provisions regarding calls. If there is no such provision in the Articles, the following provisions shall apply:
It is prohibited by law to issue any prospectus, inviting the general public to subscribe towards its share capital. The shares are taken up privately by the promoters and their relatives and friends. But in case of public company, a proper procedure has been laid down in the Companies Act for the issue and allotment of shares.