The amount of money paid by shareholders of a company for shares issued to them is called paid-up share capital.
This amount represents the company’s actual capital, and is not money borrowed.
The paid-up capital has a bearing on several aspects:
1. Calculating the equity holding of shareholders, their voting rights, and payment of dividend
2. Buyback of shares
3. Bonus issue of shares
4. Call on shares, if some shares are partly paid-up
5. Alteration of capital
6. Additional issue of capital