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Question
Distinguish between Authorised Capital and Issued Capital.
Distinguish Between
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Solution
| Authorised Capital | Issued Capital | ||
| 1. | It refers to that amount of capital which is stated in the Memorandum of Association of the Company as its registered Capital. | 1. | It refers to that part of Authorised Capital of the Company which is offered to the public for subscription. |
| 2. | Its amount is determined after considering the present and future requirements. | 2. | Its amount is determined after considering the present requirements. |
| 3. | It can exceed issued capital. | 3. | It cannot exceed authorised capital. |
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