Question:
The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ___.
The amount of share capital which a company is authorised to issue by its Memorandum of Association is known as ___.
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Authorised capital = Nominal capital = Maximum capital permitted to be raised, as per the Memorandum of Association.
Updated On: Jul 14, 2025
- Nominal capital
- Issued capital
- Reserve capital
- Subscribed capital
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The Correct Option is A
Solution and Explanation
The capital mentioned in the Memorandum of Association is called ‘Authorised Capital’ or ‘Nominal Capital’.
It is the maximum amount of share capital that a company is legally allowed to issue to shareholders.
Final Answer: Nominal capital
It is the maximum amount of share capital that a company is legally allowed to issue to shareholders.
Final Answer: Nominal capital
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