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Section 61
Corporate & Other Laws
Can anyone tell me the difference between a share and a stock. And also what Is meant by diminution of share capital and how is it different from reduction ??
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Best Answer
(Updated)
Sec 2(84) defines - share means a share in the share capital of a company and includes stock; A Share is the smallest unit into which the company's capital is divided, representing the ownership of the shareholders in the company. A Stock on the other hand is a collection of fully paid shares . All the shares are of equal denomination, whereas the denomination of stock differs. Shares are originally issued, they have nominal value and fractional transfer of share is not possible.
Sudha Reddy
(Updated)
Sec 2(84) defines - share means a share in the share capital of a company and includes stock; A Share is the smallest unit into which the company's capital is divided, representing the ownership of the shareholders in the company. A Stock on the other hand is a collection of fully paid shares . All the shares are of equal denomination, whereas the denomination of stock differs. Shares are originally issued, they have nominal value and fractional transfer of share is not possible.
Dimunition - cancellation of authorised capital u/s 61(1(e) Reduction - reduce subscribed paid up capital u/s 66
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