#17435 - Company Law Maintenance Of Capital - Company Law I

MAINTENANCE OF CAPITAL Capitalsource of funds of a company These sources: 1. Retention of property 2. Borrowing from financial institutions 3. Issuing of shares s.64 of the 2014 deals with: • Company capital, a new term which comprises the company's share capital, share premium, capital conversion reserve fund and capital redemption reserve fund; Reserve capital - Profit reserved for a particular purpose. • It shows the part of the authorizes capital that has not been yet called up by the company and is available for drawing. • It will be on the balance sheet - reserved for future or long-term capital investment projects or anticipated expenses ➢ Capital conversion reserve fund and capital redemption reserve fund; Share capital Par value of shares - in reality it can go above the par value - The aggregate amount or nominal number of a share value • Regardless of what the share actually amounts to, if you have 10 shares worth 10 euro which is the nominal value, you have 100 euro in shares Share premium account - The money put into the account that is the remainder of the value which exceeds the par value of shares. • Balances the difference between the par value and the selling price Say the shares are actually worth 12 euro each - the 2 euro will go into the share premium account. Undenominated capital