Question

As per Section 2(84), “Share” means share in the share capital of a company and includes .......... (1) Debentures
(2) Preference Shares
(3) Stocks
(4) Bonds

• A. Only (3)
• B. (1), (2), (3), and (4)
• C. (1) and (2)
• D. (1), (2), and (3)

Hint:

Under the Companies Act, 2013, “shares” represent ownership in the company, while “debentures” and “bonds” indicate borrowed capital.

Answer 1

The Correct Option is A

Step 1: Understanding Section 2(84) of the Companies Act, 2013.
According to Section 2(84), “share” refers to a share in the share capital of a company and specifically includes “stock.” This means that the term share encompasses stock but excludes other financial instruments like bonds or debentures.
Step 2: Analysis of options.
(1) Debentures — Represent borrowed capital, not share capital.
(2) Preference shares — Are a class of share capital, but the definition uses the general term “share,” which includes stock, not specific share classes.
(3) Stocks — Correct, as explicitly mentioned in the Act.
(4) Bonds — Represent debt instruments, not ownership.
Step 3: Conclusion.
Hence, only “stock” is included in the definition of share under Section 2(84).