(c) St Patrick's Cathedral Grammar School Form 6 2005 Authorised and Issued Share Capital.
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(c) St Patrick's Cathedra (c) St Patrick's Cathedra l Grammar School Form 6 2 l Grammar School Form 6 2 005 005 Authorised and Issued Authorised and Issued Share Capital Share Capital
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Transcript of (c) St Patrick's Cathedral Grammar School Form 6 2005 Authorised and Issued Share Capital.
(c) St Patrick's Cathedral Gramma(c) St Patrick's Cathedral Grammar School Form 6 2005r School Form 6 2005
Authorised and Issued Authorised and Issued Share CapitalShare Capital
(c) St Patrick's Cathedral Gramma(c) St Patrick's Cathedral Grammar School Form 6 2005r School Form 6 2005
What is Capital?What is Capital?
• Capital is the cash investment in a Capital is the cash investment in a business.business.
• Often, if an owner does not possess the Often, if an owner does not possess the money to finance their business, they will money to finance their business, they will take a partner or get a loan from a bank. take a partner or get a loan from a bank.
• Capital can also be raised through the sale Capital can also be raised through the sale of shares. This is appropriately called of shares. This is appropriately called “Share Capital”.“Share Capital”.
(c) St Patrick's Cathedral Gramma(c) St Patrick's Cathedral Grammar School Form 6 2005r School Form 6 2005
What is Authorised Share What is Authorised Share Capital?Capital?
• Authorised Share Capital is the amount of Authorised Share Capital is the amount of money a company declares that it intends money a company declares that it intends to make through the sale of shares during to make through the sale of shares during its formation. It must pay Stamp/Capital its formation. It must pay Stamp/Capital Duty on this.Duty on this.
• Stamp/Capital Duty is a fee that must be Stamp/Capital Duty is a fee that must be paid to the paid to the Companies Registration OfficeCompanies Registration Office upon establishment of a company.upon establishment of a company.
• Here is a list of these Here is a list of these feesfees..
(c) St Patrick's Cathedral Gramma(c) St Patrick's Cathedral Grammar School Form 6 2005r School Form 6 2005
What is Issued Share What is Issued Share Capital?Capital?
• Issued Share Capital is Issued Share Capital is the total capital raised the total capital raised through sale of shares, through sale of shares, i.e. the amount of i.e. the amount of shares sold times the shares sold times the value of each.value of each.
• It cannot exceed the It cannot exceed the Authorised Share Authorised Share Capital unless the Capital unless the relevant Stamp Duty is relevant Stamp Duty is paid.paid.
