The literal meaning of ‘Part’ is ‘Portion’ and in case of a company with limited liability by shares, it is construed as a part of the company’s share capital. In other words, where the share capital of the company is divided into different parts of fixed value, then each part of it is called a share. Thus a share is an undivided unit of a fixed amount, a part of the company’s capital.
1. As per section 2(86) of the Companies Act, 2013, “Share means a part of the share capital of the company and includes an inventory unless a distinction is made between an inventory and a share.”
“Share means share in the share capital of a company and includes stock except where a distinction between stock and share.”
2. According to Justice Lindley, “Part is proportional to capital
of which every member is an officer.”
“Share is the proportion of capital which each member is entitled to.”
3. According to Justice Bucklan, “Share is that part of the capital given personally by the members which represents the interest of a shareholder in the company and confers on his rights, duties and liabilities thereon. ”
“Share is the proportion of the capital contributed individually which represents a share holder’s interest in the company and provides rights, duties and entails liability on it.” It is clear from the above that shares are movable property which can be transferred according to the law given in the Articles of Association of the company. Also shares can be pledged.