1. Shares
“ A share is the interest of a shareholder in the company, measured by a sum of money, for the purpose of liability in the first place, and of interest in the second, but also consisting of a series of mutual covenants entered into by all shareholders inter se in accordance with the companies Act.”

2. Stock and shares Shares may be partly paid Stocks are fully paid
Shares can be issued directly
stocks can not be issued directly
Shares have a nominal value
stock has no nominal value
Shares must bear distinctive numbers
stock is never numbered
Shares are of equal denomination
while stocks may be split differently
Shares can not be transferred in fractions
stocks can be transfeArred in fractions

3. Types of shares Equity shares Preference shares
-cumulative and non cumulative -Participating and non participating
-Convertible and non convertible
-Redeemable Preference shares

4. Difference between preference and equity shares Nomination of shares(section72) Issue of shares -Proper authority -Absolute and unconditional -Must be communicated -Revocation of the offer Private placement Irregular allotment

5. Liability of directors
When they contravene the provisions as to allotment they are liable to compensate the company.

6. Call on Shares According to the provisions of the act
Amount, place and time of payment
Notice of call
Bona fide and for the benefit of the company
Uniform basis
Time within which shares are to be made fully paid up
SEBI guidelines

7. Share certificate Section 46
Delivery of shares certificates
-With in two months from the date of incorporation
-Within 2 months from the date of allotment
-Within 1 month from the date of receipt of
instrument of transfer or intimation of transmission
-within 6 months from the date of allotment in case of debentures

8. Share Warrants Conditions for issue -Shares must be fully paid
-Article must authorise it
-Central government approval is required
-must be issued under the seal of the company
-Application to RBI

9. Distinction between share warrant and share certificate
Lien on shares
Surrender of shares
Forfeiture of shares
Reissue of forfeited shares
Buy back of shares
Issue of share at premium
Issue of sweat equity shares
Dematerialisation of shares
Application supported by block investments
Issue of bonus shares
Employee stock option scheme