COMM 304 Lecture Notes - Lecture 1: Floating Charge, Debenture, Share Capital
Document Summary
Authorized share capital so if choose 20,000 shares @ each then ,000 is the authorized share capital (fictitious because have nothing in assets because just started corporation up). Authorized share capital--- a" should buy one share from ace (owe ) and if b" buys 1 share, so equal shareholders. Subscribed capital amount of shares issued so a" owes ace and b" owes ace . ,000 to go to work with but need security from the corporation in case anything happens (want to be able to get your money back) Ace gives a" and b" a promissory note (a promise of payment back, only as good as the persons promise who makes the note). To provide additional security can issue a debenture. Additional security debenture security sometimes called a floating charge. Debenture (floating charge) a security interest, bank controls this when loans are made to insure, they"re paid back, can take assets back at anytime.
