Question:
Nominal/Authorised Share Capital is
Nominal/Authorised Share Capital is
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Authorised Capital:
\[
\text{Maximum capital a company can issue}
\]
Updated On: May 30, 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
Authorised Share Capital, also known as:
\[
\text{Nominal Capital}
\]
is the:
\[
\text{maximum amount of share capital}
\]
that a company is legally authorised to issue according to its:
\[
\text{Memorandum of Association}
\]
It represents the upper limit beyond which shares cannot be issued unless the authorised capital is increased legally.
Option analysis:
• Option (A): Refers to Issued Capital
• Option (B): Refers to Subscribed Capital
• Option (C): Correct
• Option (D): Refers to Paid-up Capital Therefore: \[ \boxed{\text{(C)}} \]
• Option (A): Refers to Issued Capital
• Option (B): Refers to Subscribed Capital
• Option (C): Correct
• Option (D): Refers to Paid-up Capital Therefore: \[ \boxed{\text{(C)}} \]
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