Question

Which of the following statement(s) is/are true?

1. Authorised Capital < Issued Capital
2. Authorised Capital ≥ Issued Capital
3. Subscribed Capital ≤ Issued Capital
4. Subscribed Capital > Issued Capital

Options

• (i) only.

• (i) and (iv) both.

• (ii) and (iii) both.

• (ii) only.

Answer 1

(ii) and (iii) both.

Explanation:

Issued Capital cannot exceed Authorised Capital, so Authorised Capital ≥ Issued Capital. Similarly, Subscribed Capital cannot exceed Issued Capital, so Subscribed Capital ≤ Issued Capital.