5/18/2011 Share capital-terminologies ·Authorised capital Issued/subscribed capital ·Paid-up capital Unpaid capital ·Called-up capital ·Uncalled capital 11 Example 1 The memorandum of a company states that:"The share capital of the company is $1000 divided into 1000 shares of $1 each."Upon incorporation,700 shares have been issued to the company's initial subscribers.The shares are issued partly-paid to $0.50 per share.No calls have been made for the unpaid amounts on the shares. Authorised capital Issued capital (or issued share capital)= Paid up capital= Unpaid capital Uncalled capital= 65/18/2011 6 11 • Authorised capital • Issued/subscribed capital • Paid-up capital • Unpaid capital • Called-up capital • Uncalled capital Share capital - terminologies 12 Example 1 • The memorandum of a company states that: ‘”The share capital of the company is $1000 divided into 1000 shares of $1 each.” Upon incorporation, 700 shares have been issued to the company’s initial subscribers. The shares are issued partly-paid to $0.50 per share. No calls have been made for the unpaid amounts on the shares.  Authorised capital =  Issued capital (or issued share capital) =  Paid up capital =  Unpaid capital =  Uncalled capital =