Question: What do you mean by subscribed but not fully paid up shares?

What is subscribed and fully paid shares?

It is the amount of share capital issued by a company that is subscribed on which the company has called and also received entire nominal (face) value of the share.

What is subscribed capital when are shares said to be subscribed but not fully paid up?

Share capital is the total of all funds raised by a company through the sale of equity to investors. Issued share capital is the value of shares actually held by investors. Subscribed share capital is the value of shares investors have promised to buy when they are released.

What does fully subscribed shares mean?

Fully subscribed is the position a company finds itself in once all the shares of its initial bond or stock offering have been purchased or guaranteed by investors.

What is subscribed fully paid up capital?

Paid-up share capital is the aggregate amount of money received from shareholders for shares issued. Hence, the capital allotted and paid by shareholders is called paid-up capital. … That part of the subscribed capital that remains to be paid is called “Calls in Arrears” or “unpaid share capital”.

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What does fully paid mean?

: paid for at full face value with no further money due from the stockholder.

Can fully paid up shares be forfeited?

The main reason for forfeiture is where a call payment has been requested by the company on unpaid (or partly paid) shares and the shareholder has failed to pay the amount due.

What does subscribed capital mean?

As per Section 2(86) of Companies Act, 2013, “subscribed capital” means such part of the capital which is for the time being subscribed by the members of a company. It is that part of Issued Capital that is actually subscribed by the general public.

What is unpaid subscribed capital?

The subscribed capital is the set of actions that have been acquired by the previous shareholders or by any person who has attended the issuance of shares. … The remainder is called unpaid or unpaid subscribed capital.

What is the difference between subscribed capital and called up capital?

Uncalled capital is the difference between the subscribed capital and the capital which has been called. … Option a: The portion of the money paid by shareholders on the called-up capital is known as paid-up capital.

Who is the person who is appointed to ensure that the issue is subscribed fully?

An Underwriter is a financial intermediary in the primary market. The Underwriter has been defined as “a person who engages in the business of Underwriting of an issue of securities of a body corporate”[5]. The Underwriters give guarantee for the public subscription and in turn they receive the commission.

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What is stock subscription?

Definition: A stock subscription is a contract requiring an investor to purchase a set number of unissued shares from the corporation at a future date for a specific price.

What happens when an IPO is not fully subscribed?

According to SEBI (Securities and Exchange Board of India), every company needs a minimum subscription of 90% of the issued amount on the date of closure. In the event of this not happening, the company refunds the entire subscription amount it received. … The issuing company will not receive any money though.