Shareholders, serving as the proprietors of a company, hold a pivotal role, and their proportionate ownership, termed as shareholding, bears significance. In the inaugural phase, the names of initial shareholders are meticulously documented in Form 01. The valuation of a share, which inherently encompasses its monetary value, rests within the purview of the board of directors. Diverse investment pathways are available to shareholders, encompassing both cash and non-cash infusions.
Form 01 stands as the repository for the identities of initial shareholders, while subsequent share allotments necessitate reporting via Form 06 to the Registrar General of Companies. Such reporting mandates adherence to a timeline of 20 working days from the issuance date. In the course of these transactions, the board of directors assumes the task of establishing equitable valuation or consideration for the shares being offered. This valuation strives to ensure fairness to both the company and its existing shareholders.
To substantiate their ownership, shareholders are provided with a share certificate, a documented testament endorsed on behalf of the company.
The company's stated capital reflects the cumulative sum contributed by shareholders or owed to the company by shareholders. This metric is ascertained by multiplying the value attributed to a single share by the aggregate number of shares issued. The ebb and flow of the stated capital are shaped by the issuance of shares and calls made on existing shares.