VOLUNTARY WINDING UP UNDER THE SUPERVISION OF COURT

According to section 396 of Companies Ordinance, a voluntary winding up of a company can also be carried under the strict registration of the court.

1.  Resolution

At first, company has to pass special resolution for the voluntary winding up of the company.

2.  Supervision Order
Following are the common grounds on which the court issues the supervision order:

1.  The liquidator performs his duty in partial manner.
2.  The winding up resolution is obtained by fraud.
3.  The liquidator does not strictly observe the rules of winding up the company

3.  Power of the Court

The court has the power to appoint an additional liquidator, or to remove any liquidator.

4.  Dissolution

After the supervision order is made, the liquidator may exercise his powers in winding up of a company.  On completion of winding up, the court will make an order that the company is dissolved.

Share Capital;

In simple words, the term “capital” means the particular amount of money with which a business is started.

  In company, share capital means the amount contributed by the shareholders.

DEFINITION

1.  According to Alan Issacs

“Share capital is that part of the capital of a company that arises from the issue of shares”

2.  L. B. Curzon says

"Share capital is the total amount which a company’s shareholders have contributed or are liable to contribute as payment for their shares.” 

KINDS OF SHARE CAPITAL

According to Companies Ordinance, 1984, the following are the kinds of share capital:

1.  Authorized Capital

This is maximum amount of capital with which a company is registered or authorized to issue.  It is divided into shares of small value.

  For example, the authorized capital of the company Rs. 10,00,000 divided into  1,00,000 shares of Rs. 10 each.

2.  Issued Capital

It is a part of authorized capital which is offered to the general public for sale.
 

For example, a company has an authorized capital of Rs. 10,00,000 dividend into 1,00,000 shares of Rs. 10 each.  It offers 20,000 shares of Rs. 10 each to general public.  So it means issued capital is Rs. 2,00,000. 

3.  Un‐Issued Capital

It is a part of authorized capital which is not offered to the general public for sale.
 

For example, a company has an authorized capital of Rs. 10,00,000 divided into 1,00,000 shares of Rs. 10 each.  It offers 20,000 shares of Rs. 10 each to general public.  So it means un‐issued capital is Rs. 8,00,000 consisting of 80,000 shares of Rs. 10 each.

4.  Subscribed Capital

That part of issued capital for which application are sent by the public and which are accepted is called subscribed capital.
 

For example, out of 20,000 shares offered by the company, the general public takes up only 10,000 shares.  So subscribed capital, is Rs. 1,00,000. 

5.  Called up Capital

A company may require payment of the par value either in installments or in lump sum.  So amount of shares demanded by company is known as “called up capital”.
 

For example, out of 10,000 shares taken by public, company requires a payment of 6 per share.  So “called up” capital of the company is Rs. 60,000 (10,000 share @ Rs. 6).

6.  Un‐Called up Capital

A company may require payment of the par value either in installments or in lump sum.  So amount of shares not demanded by company is known as “un‐called up capital”.
 

For example, out of 10,000 shares taken by public, the company requires a payment of 6 per share.  So “un‐called up” capital of the company is Rs. 40,000 (10,000 shares @ Rs. 4). 

7.  Paid up Capital

It is that part of called up capital which is actually received by the company.  If some shareholders could not pay all the money of called up capital, such money is called as “calls in arrears” or “calls unpaid”.

8.  Reserve Capital

The capital which is reserved for unexpected events or for future needs is called reserve capital.  Company decides not to call up some part of uncalled up capital until winding up.  It is normally kept for the payment of debts at the time of winding up. 

9.  Redeemable Capital

 A company can obtain redeemable capital by issue of:
  (a)  Participation Term Certificates
  (b)  Musharika Certificate
  (c)  Term Finance Certificate