company required to file with the Registrar of Companies and SEBI

. Decliration of Solvenq [Sec. 77 A (6)]. Before buy-back, the company required to file with the Registrar of Companies and SEBI a ‘declaration of

solvency in the prescribed form duly verified by

as a result of which they have formed an opinion thai

it is capable of meeting its liabilities within a pcriod orone year of the d::t:: c; declaration. It is to be signed at least by two directors one of whom should be

the managing director, if any, In case of a company whose shares are not

listed on any rec9gnised stock exchange. the declaration is not to be filed with SEB!.

Paid up Capital. It is that part of called up capital which has actually

been paid by the members. In other words, it means total called up capital minus calls in arrears. By the Companies (Amendment) Act 2000 every public

company must have a paid up capital of Rs. 5 lakh and private company of Rs. one lakh at the time of its formation.

, 7. Rescn’c Capital. It is that portion of the uncalled capital of a company which the company has decided by special resolution in terms of Section 99

ofthe Companies Act, not to call except in the event of company

being wound up. Reserve capital provides additional security to the creditors. Once the company has created reserve capital in this way, it cannot charge

it as security for loans unlike the uncalled capital. Moreover, reserve capital cannot be turned into ordinary capital without leave of the court nor it can be

cancelled in reduction of capital (Natal Land Company f:. Paulin Colliery Syndicate). It must. however, be noted that reserve capital of a company is

different from its capital reserve which is always created out of company’s profit.

2. Issued Capital. It is that part of the authorised capital which is allotted by the company either for cash or for consideration other than cash and includes

shares allotted to the signatories to the Memorandum of Association.

3. Subscribed Capital. It is that portion of the issued capital at face value, which has been taken up by subscribers of shares in the capital either for cash

or for consideration other than cash. Thus, it is not necessary that the entire share capital must be subscribed. Where in a company, the shares are fully

paid-up the subscribed capital should be equal to the issued capital.

4. Called-Ul) Capital. It is that portion of the subscribed capital which has been called up or demanded on the shares of the company. For example, where

Rs. 5 has been called upon each of 50,000 shares of a nominal value of Rs. 10-, the called up capital shall be Rs. 2,50,000-.

5. Uncnlled Capital. It is’ that total amount which is not yet called up or demanded by the company on the shares subscribed, which the shareholders are

liable to pay as and when called. Thus, in the above case. the uncalled capital is Rs. 2,50,000-.

6. Paid up Capital. It is that part of called up capital which has actually been paid by the members. In other words, it means total called up capital minus

calls in arrears, By the Companies (Amendment) Act 2000 every public

company must have a paid up capital of Rs. 5 lakh and private company of Rs, one lakh at the time of its formation.

, 7. Resen’e Ca’pital. It is that portion of the uncalled capital of a company which the company has decided by special resolution in terms of Section 99 of

the Companies Act, not to call except in the event of company

being wound up. Reserve capital provides additional security to the creditors. Once the company has created reserve capital in this way. it cannot charge

Indian Banking Companies Act of 1949.

From 1933 to 1946, minor amendments were effected in the Act almost every year in the light of the experience gained in the working of Company Law.
After independence, some formal changes were made by the adaptation of Lands Order 1950 whieh came into force on 26 January 1950.
The Government of India felt the for a further revision of the Companies Act, in view of the far-reachin changes in the English Companies Act of 192 9
brought about by the Companies Act 1948, and also because of the development in the trade and' dustrial environment in the country during the war and
post war period year. The Government, therefore, appointed a Company Law Committee under the chairnianship of Mr. c.H. Bhabha on 25th October,
1950. Law was introduced in the Parliament in 1953 and after detailed deliberations, it was passed into the present Act-The Companies Act 1956.
The Companies Act, 1956. The Companies Act, 1956 came into force with effect from 1st April 1956. It is a comprehensive law on companies and repeals


all earlier Companies Acts. It contained 658 Sections and 12 Schedules. Two new Schedules XIII to XIV were added to the Act in 1988 and Schedule XV in
1991. In this way, there are 15 schedules at present.
In 1936 to make it at par with the English Companies Act of 1929. The amending Act of 1936 introduced for the first time the provisions defining the
powers and limitations of managing agents so as to regulate and remove the evils arising from the lhanaging agencvsystem. In this Act, a new chapter
was devoted for Banking Companies whicil was repealed in 1950 after passing the Indian Banking Companies Act of 1949.

First Indian Companies Act providing for the registration of joint state companies

It was based upon the English Companies Act of 1844. In 1857, another Act was passed incorporating the concept of limited liability of members was also

developed on the lines of the English Companies Act of 1855. In 1866, a new comprehensive Companies Act was introduced, repealing all previous Acts,

providing incorporation, regulation and winding up of the companies which resembled the English Companies Act of 1862. The Act remained in force till
1882 when the Act was recast to bring the Indian Companies Act in conformity with the various amendments mad in the English Companies Act till than
time. The Act of 1882 was amended several times in 1887, 1891 and 1910 and again in 1913 a new Companies Act was passed on the lines of the
English Companies Act of 1908. The Act contained 288 sections and 4 schedules. By this Act, the institution of 'private company' was introduced for the
first time. Some minor amendments were effected in 1914,1915,1920,1926,1930 and 1932 and the Actwase.The history of the growth of trading
companies in India runs parallel to the history of growth of companies in India. Similarly, the company legislation in India has largely been based upon the
company legislation in England. The origin of Indian Company Law dates back to 1850, when the first Indian Companies Act providing for the registration of

joint state companies was. passed.