12th Class Accounts
Why take this course?
🎓 Unlock the Secrets of 12th Class Accounts with Indiacourse!
Course Instructor: Edutainer India
🔥 Course Title: Mastering Accounts for 12th Class
🚀 Course Description:
Understanding Share Capital 🏦
What is Share Capital? Share capital is the bedrock of every organisation, representing the total sum raised by issuing shares to the public or private investors. It's crucial for sustaining and expanding a business, as it serves as the financial backbone that fuels growth and development.
The Legal Entity 📄
An organisation is often referred to as an 'artificial person' with its own legal identity, separate from its owners. When individuals or entities invest in a company by purchasing shares, they become co-owners of that company, holding a portion of the share capital. This investment reflects their ownership stake and entitles them to claim a share of the assets if the company is liquidated.
Evolution of Share Capital 📈
In the early days of modern business structures, share capital was straightforward: you bought shares, and in return, you were a co-owner with a say in company affairs. Over time, as businesses grew more complex, the types of share capital multiplied. This complexity presented challenges for shareholders, some of whom preferred to focus on their core competencies rather than manage the intricacies of corporate governance.
Preferred Shares: A New Incentive 🌟
To address these challenges, preferred shares were introduced, offering certain advantages and protecting investors from the volatility of common shares. Large company promoters were also enticed with these privileged shares, which came with additional benefits like dividends, voting rights, and redemption preferences.
The Companies Act (2013): A Framework for Share Capital 📜
The Companies Act of 2013 lays out comprehensive guidelines for how companies should issue shares and manage their share capital. It ensures transparency and fairness in corporate financial practices.
Share Capital vs. Capital: Interchangeable Terms? 🤔
In the context of organisations, 'capital' and 'share capital' are often used interchangeably. They both refer to the funds that a company has raised from issuing shares, which form the core of its financial health.
Legal Reflection of Share Capital 📊
Upon registration, a company must accurately record its share capital in its founding documents, such as the Articles and Memorandum of Association. This is a legal requirement that ensures all stakeholders are aware of the financial structure and ownership distribution of the company.
Join Indiacourse today to delve deeper into the intricacies of 12th Class Accounts, where we demystify complex financial concepts with engaging content and expert guidance. With our comprehensive course, you'll master the principles of share capital, financial management, and much more! 📚✨
Enroll now and transform your understanding of accounts with Indiacourse - your gateway to academic excellence!
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