Section 43 — Kinds of Share Capital
Section 43 Companies Act 2013 explained: equity vs preference share capital, DVR shares, participating preference shares — key for CA Inter
Paper 2 — Corporate & Other Laws · Chapter
Share Capital & Debentures
Companies Act 2013 sections 43–72 governing kinds of share capital, issue of shares (including bonus, sweat equity, ESOP), variation of rights, debentures and debenture trustees. A high-weight chapter in CA Inter Law.
12 microlessons in this chapter
Read each in 5 minutes. Each has worked examples + the bare-Act text for reference.
All lessons
1
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2
Section 47 — Voting Rights
Section 47 Companies Act 2013: voting rights of equity vs preference shareholders explained for CA Inter — including the 2-year unpaid divid
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3
Section 52 — Application of Securities Premium
Section 52 Companies Act 2013: Securities Premium Account rules, permitted uses, and exam-ready examples for CA Inter students.
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4
Section 53 — Prohibition on Issue of Shares at Discount
Section 53 Companies Act 2013: Shares issued at discount are void. Learn the rule, the RBI debt-restructuring exception, and penalty calcula
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5
Section 54 — Issue of Sweat Equity Shares
Section 54 Companies Act 2013: conditions for issuing sweat equity shares to employees/directors — special resolution, SEBI rules, and pari
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6
Section 55 — Issue & Redemption of Preference Shares
Section 55 Companies Act 2013: Rules for issuing & redeeming preference shares, Capital Redemption Reserve (CRR) creation, and the 20-year l
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7
Section 62 — Further Issue of Share Capital (Rights, ESOP)
Section 62 Companies Act 2013: rights issue, ESOP & preferential allotment rules explained simply for CA Inter May 2026 exam with examples.
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8
Section 63 — Issue of Bonus Shares
Section 63 Companies Act 2013: rules for issuing bonus shares — valid sources, 6 pre-conditions, and why revaluation reserves are banned. Es
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9
Section 66 — Reduction of Share Capital
Section 66 Companies Act 2013: How companies reduce share capital via NCLT approval, special resolution & auditor certificate — explained fo
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10
Section 68 — Power of Company to Purchase its Own Securities
Section 68 Companies Act 2013: buy-back rules, 25% limit, Board vs Special resolution, 2:1 debt ratio & timelines — simplified for CA Inter
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11
Section 71 — Debentures
Section 71 Companies Act 2013 explained for CA Inter: debenture redemption reserve, trustee rules, convertible debentures & voting rights in
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12
Section 72 — Power to Nominate
Section 72 Companies Act 2013: How nomination of shares & debentures works, overrides Wills, and what happens when the nominee is a minor —
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