(a). Loan capital, also called borrowed capital, is part of a firm’s capital employed that is:

• Raised from a bank or finance company as long-term loans & from debt-equity investors in the form of debentures or preferred stock.
• Having a rate of interest as an earning instead of dividends, and
• Must be repaid within a specified period, irrespective of the firm’s financial position.

Share Capital, also known as “equity financing,” is part of a firm’s capital employed that is:

• Raised by issuing shares in return for cash or other considerations.
• It earns dividends.
• It needs to be repaid only at the time of company’s dissolution.
• Share capital can be composed of both common and preferred shares.

(b).  Preference share means a share, by whatever name designated in the Constitutions, which does not entitle the holder thereof to any right to participate beyond a specified amount in any distribution whether by way of dividend or on redemption, in a winding up or otherwise, while Ordinary shares bear the greatest risk and also possess a potential to reap the greatest rewards.

(c). Section 50 of Act 992 provides for the altering of shareholders or creditors’ rights. Shareholders’ rights, including voting rights, voting ratio or proportion, class of membership, proportion of dividend to be distributed. Such alteration must have been provided under the Constitutions and where the constitutions must be altered to have such variation, the approval of the court will be required where:

• There are dissenting voice(s) about the class right variation,
• Constitutions do not permit such variation of class rights,
• Or constitutions forbid an alteration in the procedure to vary class rights.

(d).

• A debenture is one of the most typical forms of long-term loans that a company can take. It is normally a loan that should be repaid on a specific date, but some debentures are irredeemable securities (sometimes referred to as perpetual debentures).
• A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).
• A floating charge is a security interest over a fund of changing assets (e.g., stocks) of a company or other legal person. A floating charge is created over property of an ambulatory and shifting nature.