Alpha and Gamma are friends since their childhood. They have got whole of their education in every
school jointly. Recently, both of them have graduated from a local business school getting degrees in
business management. After this graduation, they decided to start a business of online car rental. For that
purpose, they got developed a mobile application named Carg that can be run on all Android and Apple
smart phones. Further, they shared their business plan with a professional promotor to setup a new
business entity. With all the necessary documentation, the new entity has been successfully registered on
5
th of January 2023 with the SECP as a limited liability company in the name of Alpha Limited. It was
registered with the capital of Rs. 500,000 divided into 25,000 ordinary shares of Rs. 20 each. On 20th of
January, the new company offered 15,000 shares at par to the general public. On 23rd of January, the
company’s bank informed it that application money on 14,500 shares has been received from the general
public in the company’s bank account. Alpha’s management allotted shares to all the applicants on 31st of
January, 2023.
You are required to identify the kinds of share capital presented in this case describing briefly the
each kind.