Meaning and Definition of Share
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, when 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 equity capital of a company and includes an inventory unless the stock and
The fraction is not differentiated. ”
“Share means share in the share capital of a company and includes except where a distinction between stock and share.” 2. According to Justice Lindley, “Share is a proportionate share of 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 given law of the company. Also the shares can be pledged.