Capital and reserves

Disclosures relating to share capital

An enterprise should make full disclosures relating to share capital on the face of balance sheet or in the notes.

The difference between ordinary and preference shares

The difference between ordinary and preference shares: voting power, distribution of profit and liquidation of the company.

Preference shareholders

The preference shareholders have a prior claim to any company profits available for distribution.

What are the ordinary shares?

Ordinary shares are the normal shares issued by a company. The ordinary shareholders can vote at company meetings and receive dividends from profit.