AIBE XIX — December 2024 — Q.71 (Companies Act, 2013)

Share Q.71:

Q.71

Company Law Easy Act + Section Given

Bare Act Companies Act, 2013 · Section 43

Section 43 of the Companies Act, 2013 provides for _______.

A Issue of Shares at Premium

✓ Kinds of Shares Capital Answer

C Buy Back of Shares

D Reduction in Share Capital

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Explanation & Strategy

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Section 43 classifies share capital into two fundamental categories: equity share capital (representing ownership with voting rights and variable dividends) and preference share capital (carrying preferential rights to dividends and capital repayment but typically limited voting rights). Section 52 deals with shares at premium, Sections 68-70 with buyback, and Section 66 with reduction of share capital.

1 Pick up Companies Act, 2013.
2 Go directly to Section 43.
3 Read: 'The share capital of a company shall be of two kinds: (a) equity share capital, (b) preference share capital.' → This is 'Kinds of Share Capital.'

The text reads: Section 43: The share capital of a company limited by shares shall be of two kinds, namely: (a) equity share capital, and (b) preference share capital.

At a Glance

Subject Company Law

Difficulty Easy

Act Companies Act, 2013

Section Section 43

Answer (B) Act + Section Given

Paper AIBE XIX — December 2024

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