Shares:

The capital of the company is divided into units of small denomination. These units are called shares. Sec. 2(46) of the
Companies Act explains the meaning of share as a share in the share capital of a company. Holders of shares are called shareholders.

For example : If the authorised capital Rs.10,00,000 is divided into 1,00,000 units of Rs.10 each, then each unit of Rs.10 is called a
share of Rs.10 each. Thus, in the above case, the company is said to have 1,00,000 shares of Rs.10 each.

Shares must be numbered so that they may be identified. They are transferable in the manner provided by the Articles of Association.