Ch 2 · Share Capital and Debentures (Sec 43-72)

5 concept points · 3 formulas · 4 exam-critical points.

📘 Core concepts

• 1Kinds: equity (with/without DVR) and preference (cumulative/non-cumulative, participating, convertible).
• 2Issue at premium (Sec 52) — use restricted; issue at discount (Sec 53) generally prohibited.
• 3Bonus issue (Sec 63) from free reserves, securities premium, capital redemption reserve.
• 4Buy-back (Sec 68) — up to 25% of paid-up capital + free reserves in a year, max debt-equity 2:1.
• 5Debentures: secured/unsecured, convertible/non-convertible, redeemable/irredeemable.