SHARES, DIVIDENDS AND ALL THE EVENTS.

Shares are items of personal property and so can be transferred from one person to another. Dividends are the earnings attributable to shareholders Before discussing the various rules relating to shares and share capital, it is relevant to explain some important terms that will commonly arise in relation to a company’s share capital:

• Nominal value: A fixed value that must be attached to all the shares in a limited company.
• Share premium: The amount paid for a share that is over the nominal value.
• Authorised share capital: The maximum total nominal value of shares that a company may issue.
• Allotted share capital: The total nominal value of shares that a company has allotted.

“ Earnings per share can be defined as the residual profits attributable to each equity shareholder.”

• Issued share capital: The total nominal value of shares that a company has issued.
• Paid-up share capital: The combined total of the nominal value of shares that has actually been paid.
• Called-up share capital: The paid-up share capital plus any payment called for or any instalment due.
• Uncalled share capital: The amount that a company can call on before the shares are fully paid for.
• Bonus shares: Shares that are issued fully paid up to existing shareholders in proportion to their existing holdings.