Glossary of Terms
A share represents a unit of the ownership in a company. In other words, if you are a shareholder of a company, you hold a percentage of ownership of the said company in proportion to share you have subscribed or bought.
Every person holding a share certificate is called a shareholder/member of the company. The shareholder’s name is entered in the Register of members maintained by the Private Limited company
Memorandum of Association
Memorandum of Association is the Charter/Constitution of the company. It defines the objects of the company both primary objects and incidental objects for which the company is formed. It also includes details related to Capital, Name, Registered office, Authorised capital, Liability clause. The shareholders approve and sign the MOA on Incorporation which is called subscribing to MOA.
Articles of Association
Articles of Association are bye laws of the company that govern the internal management and conduct of the business of the company. AOA is part of the MOA and is governed by the MOA of the company. It regulates the relationship between the company and its shareholders, as well as between the shareholders itself.
Share capital refers to the amount invested in the company for carrying its stated operations.
Authorised Share capital
It is the Maximum amount of capital for which shares can be issued to its shareholders. It is mentioned in the MOA under Capital clause.
It is the actual amount of Shares issued to its shareholders and the money has been received from the shareholders. Paid up share capital is the subset of Authorised capital
Director Identification Number
A DIN is a unique identification number allotted to an Individual who is appointed as Director of a company.
Company Identification number
A Company Identification number (CIN) is a 21 digit alphanumeric unique number assigned by the Registrar of Companies (ROC) for every company registered in India. Every company has to mandatorily mention the CIN in their business correspondences and official publications.
Digital Signature Certificate
Digital Signing Certificates (DSC) are the digital equivalent to physical identification certificates such as driver license, passport or membership card. Just like the physical certificates serve as proof of identity of an individual for a certain purpose .A digital certificate can be presented electronically to prove one′s identity and sign certain documents digitally.
Share certificate is issued by the Company on allotment of shares. It evidences the title of the person to such shares. It has to be issued within 2 months from the date of incorporation.