The Capital which is raised by a Company by the issue of Shares is called Share Capital. Share is an interest in the company which entitles the owner thereof to receive proportionate part of the profits and of a proportionate part of the assets of the Company. The term Capital in relation to a Company can be used in several senses. Capital may mean Issued, Subscribed, Authorized or Nominal, Paid-up, Uncalled and Reserve capital of the Company. There are two kinds of Share Capital of a Company, namely, Equity Share Capital and Preference Share Capital. There is a provision of Alteration of Capital under the Companies Act, 1956. If a Limited Company having a Share Capital is authorized by its Articles of Association, it may alter its Share Capital. The Share holders have been conferred with the right to vote. An equity Shareholder is entitled to vote on every resolution placed before the Company. A Preference Shareholder is entitled to vote only on resolutions which directly affect the rights attached to his preference shares and resolutions for the winding up of the company. There are various rights conferred upon the Shareholders of a company under the Companies Act, 1956 in respect of accounts, votes, general meeting, inspection of register, transfer of Shares, etc.
