As per sec 4(1)(e) of Companies Act 2013, a company having a share capital, the memorandum of association must state the amount of ___________.
A
Authorised/ registered capital
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B
Paid-up share capital
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C
Called-up capital
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D
Reserved capital
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Solution
The correct option is B Authorised/ registered capital The Authorized capital of the company is the maximum amount of share capital that a company is authorized by its constitutional document to issue to shareholders.
The Capital clause of memorandum of association must incorporate the amount of its share capital and division thereof.