Parekh vs. Somaiya: Share Capital ka Khel

So you guys must know cricket bhai, right? Imagine the Mumbai Indians team, all the players are like shareholders, and the team is like the company. Now, the team has a fixed number of seats (shares) allocated to each player. But, what if a player suddenly has more money? Can he just go and buy extra seats? Not directly, bhai.

In a company, the share capital is the total value of these seats. And, just like in cricket, you can't just add new players (shares) without the permission of the team management (board of directors). This is where the concept of authorized and issued capital comes in. Authorized capital is like the total number of seats fixed by the team management, and the issued capital is like the actual number of seats filled by players. Parekh vs.