Question

Nominal share capital is ______.

पर्याय

• that part of authorised capital which is issued by the company

• the amount of capital which is actually applied by the prospective shareholders

• the amount of capital which is actually paid by the shareholders

• the maximum amount of share capital which a company is authorised to issue

Answer 1

Nominal share capital is the maximum amount of share capital which a company is authorised to issue.

Explanation:

Nominal Share Capital (also called Authorised Capital or Registered Capital) is the maximum amount of capital that a company is legally permitted to raise by issuing shares, as stated in its Memorandum of Association. It is the upper limit beyond which the company cannot issue shares unless the capital is increased with approval.