What is shareholders funds?

It is an equity part of balance sheet when company need capital for its working and if legally firm is eligible to issue shares in public for raising capital then the amount which company receive is recorded in share holder's fund. It is the amount received by company by issuing shares in public It is the summation of a company's paid up share capital and retained earnings. For company's accounts, it does not include minority interest but for group accounts it can be termed to be shareholders fund with minority interest The retained earning in the equation is a function of the amount of dividends paid which shareholders may consider too low or creditors (i.

E debt holders) may consider too high.

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