Section 43 of the Companies Act, 2013 provides for _______.
Explanation & Strategy
Click any section to expand · only one open at a time
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.
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.