Share capital

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pradeep

pradeep (Querist)
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15 September 2013 what is mean by same class of shares?

Ajay Mishra

Ajay Mishra (Expert)
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15 September 2013 Hi

In terms of the provisions of section 86 of the Act, the share capital of a company limited by shares shall be of two kinds only, namely:—
(a) equity share capital—
(i) with voting rights; or
(ii) with differential rights as of dividend, voting or otherwise in accordance with such rules and subject to such conditions as may be prescribed.
(b) preference share capital.
Equity share capital means all such share capital which is not preference share capital.

Same class of shares means shares issued under same class. If the company issuing equity shares to the new shareholder with voting rights then it will be said it is issued under same class of "equity shares issued with voting right" class.

The same is apply to other class of equity and preference shares.

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