Question:
Nominal/Authorised share capital is:
Nominal/Authorised share capital is:
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Memorise key terms like authorised, issued, subscribed, and paid-up share capital to differentiate between them.
Updated On: Jan 13, 2026
- That part of the share capital which is issued by the company.
- The amount of share capital which is actually applied for by the prospective shareholders.
- The maximum amount of share capital which a company is authorised to issue.
- The amount actually paid by the shareholders.
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The Correct Option is C
Solution and Explanation
Nominal or authorised share capital refers to the maximum value of shares that a company is authorised to issue as per its Memorandum of Association. It represents the upper limit of share capital that a company can legally raise.
Hence, the correct answer is (C).
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