This sub unit is concerned with share capital. A company limited by shares issues and allots shares to a shareholder in return for capital. The Act provides that shares in a company shall be a moveable property and by means transferable. It is important to know that company issues shares to raise capital and shares are issued with different rights attached to the shares so issued. These rights defer in regard to voting rights, priority in repayment of capital and dividend, entitlement of dividends declared, tight to any surplus of assets upon winding up.
| Self-test 3.1
|Question to self-test 3.1||Suggested answers to self-test 3.1|