Equity shareholders bears the loss of the company.

Yes, it is possible that some shareholders do not pay installment amount due on allotment or calls.

Securities premium can be utilized for all of the mentioned options i.e. 

• writing off any preliminary expenses of the company


• writing off expenses of issue of shares and debentures


• providing for the premium that is payable on the redemption of debentures

Securities premium once received cannot be cancelled.

Shares are alloted after receiving application money

Authorised capital is also called nominal or registered capital.

Called up capital is that part of the subscribed capital which has been called up on the shares.

Dividends are profits of the company that are agreed to be distributed to the shareholders of the company.

That portion of the subscribed capital which has not yet been called up is known as un-called capital.

The authorised capital can be increased or decreased as per the procedure laid down in the Companies Act.