What are the different kinds of shares

 What are the different kinds of shares which a company can issue as per the indian Companies Act, 2013 ?

Under the Indian Companies Act, 2013, a company can issue various types of shares, including:

Equity Shares: These are the most common type of shares and represent ownership in the company. Equity shareholders have voting rights and may receive dividends.

Preference Shares: These shares come with certain preferential rights, such as a fixed dividend rate before equity shareholders are paid. They may not have voting rights or may have limited voting rights.

Cumulative Preference Shares: These preference shares accumulate unpaid dividends if the company doesn't have sufficient profits. The accumulated dividends must be paid before any dividends are distributed to other shareholders.

Non-Cumulative Preference Shares: Unlike cumulative preference shares, these do not accumulate unpaid dividends. If the company cannot pay a dividend in a particular year, the right to receive it is lost.

Redeemable Preference Shares: These shares can be redeemed by the company after a specified period or under certain conditions. They are essentially repurchased by the company from the shareholder.

Non-Redeemable Preference Shares: These preference shares cannot be redeemed by the company, meaning the shareholder holds them indefinitely.

Convertible Preference Shares: These shares can be converted into equity shares after a specific period or under predetermined conditions.

Non-Convertible Preference Shares: These preference shares cannot be converted into equity shares and remain as preference shares throughout their existence.

Sweat Equity Shares: These are shares issued to employees or directors at a discount or for consideration other than cash, as a reward for their expertise, skill, or effort.

Rights Shares: These are offered to existing shareholders in proportion to their existing holdings when the company decides to issue more shares.

Bonus Shares: These are free additional shares given to existing shareholders, typically as a reward for their loyalty or as a way to capitalize profits.

The specific terms and conditions associated with each type of share can vary, and companies may issue different classes of shares to meet their financing and ownership needs while complying with the Companies Act, 2013, and other applicable regulations.