An increase, reduction, or any other change in the share capital of a company. Alteration of share capital includes processes like consolidation, subdivision, and cancellation of unissued shares.
An essential ledger account in the process of share capital application and allotment, detailing the financial transactions related to the acquisition of shares in a company.
In the UK, the statutory minimum of £50,000 for the share capital of a public company. There is no minimum share capital for private companies.
In finance, a bid refers to the price or yield at which a buyer indicates they are willing to purchase a financial obligation. It can also signify an offer by one company to purchase the share capital of another.
In finance and accounting, 'capital' refers to various forms of assets, interests, or financial contributions that play a critical role in the functioning of an entity or the production process, enhancing productivity and enabling operations.
A comprehensive financial account in various types of business, recording different aspects of share capital, investments, and capital expenditures.
A capital redemption reserve is a statutory reserve created when a company repurchases its own shares, leading to a reduction in share capital. This non-distributable reserve ensures the maintenance of the company's capital base and protects creditors' interests.
Capital transactions refer to significant financial activities involving things like share capital and reserves, long-term debt capital, or fixed assets of a company, as opposed to revenue transactions which are common, operational activities.
A Certificate to Commence Business is a document issued by the Registrar of Companies to a public company upon incorporation, certifying that the nominal value of the company's share capital is at least equal to the authorized minimum. This certificate allows the company to start conducting business and exercising its borrowing powers.
Distributable profits (or distributable reserves) are the profits of a company that are legally available for distribution as dividends to its shareholders. This includes a company's accumulated realized profits after deducting all realized losses.
Equity Share Capital refers to the portion of a company's capital that is raised in exchange for shares, representing ownership stakes in the company. This differs from non-equity shares which may include debt or preferred stock.
Notes to the accounts, also known as notes to financial statements, provide detailed information and explanations that support and complement a company's financial statements. These notes help users understand and interpret the financial data and the company's overall performance and financial health.
Ordinary share capital is the total share capital of a company consisting of ordinary shares, which entitles shareholders to a share in the company's profits and may include voting rights and other privileges.
A company registered under the Companies Act as a public company, authorized to offer shares and securities to the public. A PLC has stricter regulatory requirements compared to private companies.
A reduction of capital refers to the process whereby a company decreases its share capital, typically to return excess capital to shareholders or to write off losses. This action is governed by the Companies Act 2006 and requires specific resolutions and conditions to be fulfilled.
The Register of Members, also known as a Share Register, is a mandatory list maintained by UK companies. It logs the company's members, providing essential details including their names, addresses, and shareholding status.
Share capital is a crucial component of a company's finances, received from its owners or shareholders in exchange for shares. It represents the equity funding that a company relies on to conduct its operations and grow.
A share premium account records the amount received by a company over and above the par value of its shares. Such balances are used for specific purposes under regulatory stipulations.
Share splitting involves dividing the share capital of a company into smaller units. This practice usually aims to make shares more affordable and increase their liquidity in the market.
Shareholders' equity represents the owners' claim after subtracting total liabilities from total assets. It is a crucial metric for understanding a company’s financial health and includes components like share capital and reserves.
Undistributable reserves, often termed capital reserves, refer to specific reserves that cannot be distributed to shareholders as per the stipulations of the Companies Act, various statutes, or a company's constitutional documents. These reserves ensure the financial stability and compliance of a company.
