Question

Amount of capital stated in the Memorandum of Association as the share capital of the company is known as -
(1) Subscribed Capital or Authorized Capital
(2) Paid-up or Subscribed Capital
(3) Nominal or Called-up Capital
(4) Nominal or Authorized Capital
The correct answer is-

• A. (3)
• B. (1)
• C. (2)
• D. (4)

Answer 1

The correct option is D (4)

Memorandum of Association of a limited company having share capital (i.e. company limited by shares or company limited by guarantee having share capital) must also state the amount of share capital with which the company is to be registered which is usually called authorized or nominal capital.