227Topic list Syllabus reference
1 Members E1(a)
2 The nature of shares and capital E1(a)
3 Types of share E1(b)
4 Allotment of shares E1(c)
5 Issuing shares at a premium or at a discount E1(d)
e
Share capital
Introduction
In this chapter the nature of share capital is explained. You should note (and
not confuse) the different types of capital that are important for company law
purposes.
The rest of the chapter discusses procedural matters relating to the issue and
transfer of shares. You will see that there are built-in safeguards to protect
members' rights, pre-emption rights and the necessity for directors to be
authorised to allot shares. There are also safeguards that ensure that a
company receives sufficient consideration for its shares.