5/18/2011 Company Law ll Lecture 1: An Overview of Corporate Finance Share Capital-Part 1 Share capital-legal nature ·What is a share? ·A unit of account Financial instrument What is the legal significance(nature)of shares? Shares as things in action Control rights Benefits of having membership rights? 2 15/18/2011 1 1 Company Law II Lecture 1: An Overview of Corporate Finance Share Capital - Part 1 2 Share capital – legal nature • What is a share?  A unit of account  Financial instrument • What is the legal significance (nature) of shares?  Shares as things in action  Control rights  Benefits of having membership rights?