STOCK. The capital of a company is the money contributed by the members and forms what is called the stock. A member may hold so much stock or so many shares in the company. Stock may be held and transferred in any amounts, whereas shares are for fixed amounts, e.g. a person may hold 1165 of stock if the capital is dealt with in that way ; but if the capital is divided into shares of, say, .15 each, fully paid, then the person with the same holding would have thirty-three shares 15 each. Stock, by its nature, is fully paid up, but upon shares there is often a liability.
There may be varieties of stock as guaran teed, preference, ordinary, deferred and other kinds, which entitle the holders to different rights in the matter of dividends and in a division upon a winding up of the company.
In companies where Table A applies (see Section 11 under ARTICLES OF _ASSOCIATION) the regulations are : Conversion of Shares into Stock.
" 31. The directors may, with the sanction of the company previously given in general meeting, convert any paid-up shares into stock, and may with the like sanction reconvert any stock into paid-up shares of any denomination.
32. The holders of stock may transfer the same, or any part thereof, in the same man ner, and subject to the same regulations, as, and subject to which, the shares from which the stock arose might previously to con version have been transferred, or as near thereto as circumstances admit ; but the directors may from time to time fix the minimum amount of stock transferable, and restrict or forbid the transfer of fractions of that minimum, but the minimum shall not exceed the nominal amount of the shares from which the stock arose.
" 33. The holders of stock shall, according to the amount of the stock held by them, have the same rights, privileges, and advan tages as regards dividends, voting at meet ings of the company, and other matters as if they held the shares from which the stock arose, but no such privilege or advantage (except participation in the dividends and profits of the company) shall be conferred by any such aliquot part of stock as would not, if existing in shares, have conferred that privilege or advantage.
" 34. Such of the regulations of the com pany (other than those relating to share warrants) as are applicable to paid-up shares shall apply to stock, and the words ' share ' and ' shareholder ' therein shall include ' stock ' and ' stock-holder.' " (See COM PANIES, SHARE CAPITAL.)