Section 85 of the Companies Act, 2013
Section 85 of the Companies Act, 2013 was originally part of the Act, but it has since been omitted.
📌 Section 85 – Omitted by the Companies (Amendment) Act, 2017 (w.e.f. 7 May 2018)
Before omission, Section 85 defined the terms “preference share capital” and “equity share capital” in the context of Chapter VI: Share Capital and Debentures.
Earlier Text (Before Omission):
Section 85 – Definitions
For the purposes of this Chapter,—(a) “preference share capital” means that part of the issued share capital of a company which carries or would carry a preferential right with respect to—
(i) payment of dividend, either as a fixed amount or an amount calculated at a fixed rate, which may either be free of or subject to income-tax; and
(ii) repayment, in the case of a winding up or repayment of capital;
(b) “equity share capital”, with reference to any company limited by shares, means all share capital which is not preference share capital.
🔄 Current Status:
These definitions are now covered under Section 43 of the Companies Act, 2013, which classifies share capital into:
(a) Equity Share Capital
(b) Preference Share Capital
✅ Reference Now:
Please refer to Section 43 for the updated definitions and classification of share capital.
RELATED Blog
0 comments