Section 12 of BRA : Section 12: Regulation Of Paid-Up Capital, Subscribed Capital And Authorised Capital And Voting Rights Of Shareholders

Explanation using Example

Imagine a scenario where 'XYZ Bank Limited' is a banking company operating in India. According to Section 12 of the Banking Regulation Act, 1949, XYZ Bank must ensure the following:

• The bank's subscribed capital must be at least half of its authorised capital. Additionally, the paid-up capital must be at least half of the subscribed capital. If XYZ Bank decides to increase its capital, it must comply with these ratios within a maximum of two years, as permitted by the Reserve Bank of India (RBI).
• XYZ Bank's capital must be composed of either only equity shares or a combination of equity and preference shares. If the bank issues preference shares...

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