I have to determine paid up capital of a company to check the criteria of small size company. Therefore, Confirmation of following concept requested:
“Paid up capital includes ordinary shares as well as irredeemable preference shares. where as redeemable preference shares are considered as liability”
Further please explain how to treat convertable preference shares when determining paid up capital .
If they are convertible, either at the option of the share holder or the company, then they are redeemable and early part of your post deals with the treatment of redeemable preference shares