Question

Nominal share capital is ______.

पर्याय

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

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

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

• the amount actually paid by the shareholders.

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 shareholders approve an increase in capital.