Compare shares with debentures, and explain ultra vires borrowing's consequences.

Capital = the company's owned funds — the shareholders' money in the venture, against which the business trades (distinguishing itself from borrowed funds — 4.15). The types' ladder (the exam map): | Type | Meaning | |---|---| | Authorised/registered capital | The MOA's ceiling — the maximum share capital the company may issue (alterable only by the MOA route — 4.11) | | Issued capital | The portion actually offered to subscribers | | Subscribed capital | The portion taken up (subscribed for) | | Called-up capital | The portion the company has called in | | Paid-up capital | The portion actually paid (the company's real equity base) | | Uncalled/unpaid capital | The members' residual exposure (the limited liability's cushion — callable on winding up) | Beside them: share premium (the above-par excess — 4.6), reserves and free reserves (the undistributed profits' pools), and capital reserves' discipline (the non-distributable core).