Question

Nominal share capital is:

• A. that part of authorised capital which is issued by the company
• B. the amount of capital which is actually applied for by the prospective of the shareholders
• C. the maximum amount of share capital which a company is authorised to issue
• D. the amount actually paid by the shareholders

Hint:

Remember: Nominal (Authorized) Capital = Maximum capital company can issue legally; Issued Capital $\leq$ Nominal Capital.

Answer 1

The Correct Option is C

Nominal share capital, also known as authorized share capital, represents the maximum amount of capital that a company is legally permitted to raise through the issuance of shares to shareholders. It sets a ceiling on how much share capital the company can offer but does not mean the entire amount is issued or subscribed.