How to calculate number of shares taken by each subscriber in MOA form

707 votes

1. In case of a Private Ltd Company, there is a subscriber sheet at the end of the MOA as an addendum which indicates the initial shareholders at the time of inception of the company. Any transfer of shares or buy back or additional issue of shares till the time of the drafting of the MOA shall be reflected in the subscriber sheet.

Please note that the company will specify the authorized share capital @ Rs. x per share. The number of shares will be calculated on the basis of the paid up capital. For example, if the authorized share capital is Rs. 10000, and the paid up capital is Rs. 5000 and the rate of each share is Rs. 10. If a person "Y" invests Rs. 2400 in the paid up capital, his shareholding would be 240 shares out of total of 500.

2. Out of authorised share capital, a minimum amount of paid up share capital is usually prescribed in the MOA. A fixed percentage may be set up for the company to keep in its account out of the total paid up share capital.

Please note: there is no fixed norm for minimum amount of capital that is to be kept in bank account. There is a minimum limit out of which the company is at liberty to appropriate that amount as per its objectives and provisions in the MOA.

Advocate Shantanu Chaturvedi LawRato

755 votes

In general the face value of a share is Rs. 10/- per share. In the MOA the amount subscribed by each of the original shareholders should be divided by 10 to determine the number of shares to be taken be each original subscriber/shareholder.

The minimum amount of capital, till very recently was prescribed as Rs. 1,00,000/-. However the same has been done away with, and a lower amount may be kept as the share capital of the Company, if so desired by the original shareholders.

Advocate Aditya Shamlal LawRato