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II. Capital Structure of a Company - Coggle Diagram
II. Capital Structure of a Company
Owned Capital Vs Borrowed Capital
Aspect
Holder
Profit distribution
Payment of return
Legal status
Voting rights
Conversion
Priority
Charge on asset
Share Capital-meaning nature and types.
Class
Equity SC
With voting Rights
With differential rights as to dividends
Preference SC
Right to dividends at a fixed amount or rate
Right to repayment of capital on winding up [Sec.85(1)]
Types
(i) Authorized, registered or nominal capital
(ii) Issued capital
(iii) Subscribed capital
(iv) Called up capital
(v) Paid up capital
Debentures
Features
Borrowed Fund
Fixed Rate of Interest
Compulsory Payment of Interest
Security
Redeemable
No voting rights
Types
Secured Debentures
Unsecured Debentures
Convertible Debentures
Non-convertible Debentures
Redeemable Debentures
Non-redeemable Debenture
Registered Debentures
Bearer Debentures
Public Deposits-Provisions
Co. with net worth ≥100Cr or turnover ≥500Cr
Must get prior shareholder consent through Special Resolution
Resolution must be filed with registrar before inviting deposits
If borrowing within limit of Sec. 180(1)(c), Ordinary Resolution suffices.
Debentures vs Shares