Meaning and Definition of Share Capital
As its name suggests, share capital refers to that part of the total capital of the company which is received or to be received by a company by issue of its shares. The capital of the company is divided into undivided units of a fixed amount. These units are called ‘fractions’. The sum of the shares is called ‘share capital’.
According to M. C. Kuchhal, “Share capital means that amount of capital which has been received or is to be received from the issue of shares of the company.” s. According to M. Shah, “Under the Companies Act, the word capital is used in many senses – authorized capital, issued capital, requested capital, paid up capital.”
According to Palmer, “Part capital means that capital which is obtained by selling shares”.
Appropriate Definition After studying the above definitions of share capital, it can be said in conclusion that “share capital means that amount of capital of the company which it has received or received by issue of shares”. Is. “