SHARE CAPITAL OF A COMPANY
Meaning -: Share Capital means the amount that a company receives towards Share Capital from issue of shares, both Equity Shares and Preference Shares.
Share is a unit in which capital of the company is divided. Each share has its nominal (face) value.
Holders of these shares are called Shareholders or Members of the company.
KINDS OR CLASSES OF SHARES
Section 43 of the Companies Act, 2013 prescribes that Share Capital of a company broadly can be of two types or classes:
1. Preference Shares; and
2. Equity Shares
1. Preference Shares-:
Preference Shares are the shares which carry the following two preferential rights: (i) Right to receive dividend, to be paid as fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income tax, before it is paid to Equity Shareholders . 
(ii) Right to receive repayment of capital on the winding up of the company before that of equity shareholders .
Types or Classes of Preference Shares
Preference Shares can be broadly classified as follows:
• With Reference to Dividend
• With Reference to Participation in Surplus Profit
• With Reference to Convertibility
• With Reference to Redemption.
With Reference to Dividend
Cumulative Preference Shares and Non-Cumulative Preference Shares.
Cumulative Preference Shares
Cumulative Preference Shares carry the right to receive arrears of dividend before dividend is paid to the Equity Shareholders.
For example, a company has 1,000; 7% Preference Shares of ₹ 100 each and dividend for the years ended 31st March, 2023 and 2024 has not been paid.
The company shall pay ₹ 2,10,000 as dividend for three years ended 31st March, 2024 to the Preference Shareholders before dividend is paid to the Equity Shareholders.
Non-Cumulative Preference Shares
Non-Cumulative Preference Shares do not carry the right to receive arrears of dividend.
In the above example, Preference Shareholders shall be entitled to receive dividend only for the year .
With Reference to Participation in Surplus Profit
Participating Preference Shares and Non-Participating Preference Shares.
Participating Preference Shares
The Articles of Association of a company may provide that after dividend has been paid to the Equity Shareholders, holders of Preference Shares will also have a right to participate in the remaining profit. The Preference Shares carrying this right are called Participating Preference Shares.
Non-Participating Preference Shares
Preference Shares which do not carry the right to participate in the profit remaining after Equity Shareholders have been paid dividend are Non-Participating 
With Reference to Convertibility
Convertible Preference Shares and Non-Convertible Preference Shares.
Convertible Preference Shares
Convertible Preference Shares carry a right to be converted into Equity Shares.
Non-Convertible Preference Shares
Non-Convertible Preference Shares do not carry a right to be converted into Equity Shares.
With Reference to Redemption
Redeemable Preference Shares and Irredeemable Preference Shares.
Redeemable Preference Shares
Redeemable preference  shares are redeemed by Company at the time specified (not exceeding 20 years from the date of issue ) for repayment .
The repayment of amount is termed as redemption .
Irredeemable Preference Shares.
Irredeemable Preference Shares are those the amount of which can be returned by the company to the holders for such shares when the company wound up .
( *The Companies Act, 2013 does not permit issue of Irredeemable Preference Shares. )
2. Equity Shares
Shares which do not Enjoy preferential Right of Reciving Dividend or Right of Repayment of Capital Are Equity Shares .