The Companies Act lays down that the share capital of a

Solution

Section 43. Kinds of share capital: The share capital of a company  limited by shares shall be of two kinds, namely:— (a) equity share capital— (i) with  voting right ; or (ii) with differential rights as to dividend, voting or otherwise in accordance with such rules as may be prescribed; and (b) preference share capital: Provided that nothing contained in this Act shall affect the rights of the preference shareholders who are entitled to participate in the proceeds of winding up before the commencement of this Act.