Question:
Section 43 of the Companies Act, 2013 provides for ...........
Section 43 of the Companies Act, 2013 provides for ...........
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Remember: Section 43 of the Companies Act, 2013 defines two kinds of share capital — equity and preference shares.
Updated On: Oct 30, 2025
- Buy Back of Shares
- Reduction in Share Capital
- Issue of Shares at Premium
- Kinds of Share Capital
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The Correct Option is D
Solution and Explanation
Step 1: Understanding Section 43 of the Companies Act, 2013.
Section 43 defines the classification of share capital in a company limited by shares. It specifies two main kinds of share capital: 1. Equity share capital — with or without voting rights.
2. Preference share capital — which has preferential rights regarding dividends or repayment.
Step 2: Analysis of options.
(A) Incorrect — Buy-back of shares is covered under Section 68.
(B) Incorrect — Reduction of share capital is covered under Section 66.
(C) Incorrect — Issue of shares at premium is dealt with in Section 52.
(D) Correct — Section 43 deals with the kinds of share capital.
Step 3: Conclusion.
Hence, the correct answer is (D) — Section 43 provides for kinds of share capital in a company.
Section 43 defines the classification of share capital in a company limited by shares. It specifies two main kinds of share capital: 1. Equity share capital — with or without voting rights.
2. Preference share capital — which has preferential rights regarding dividends or repayment.
Step 2: Analysis of options.
(A) Incorrect — Buy-back of shares is covered under Section 68.
(B) Incorrect — Reduction of share capital is covered under Section 66.
(C) Incorrect — Issue of shares at premium is dealt with in Section 52.
(D) Correct — Section 43 deals with the kinds of share capital.
Step 3: Conclusion.
Hence, the correct answer is (D) — Section 43 provides for kinds of share capital in a company.
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