Multiple choice

An authorised capital refers to

  1. paid up value of all shares allotted

  2. called up value of all shares allotted

  3. nominal value of all shares offered to public

  4. that amount which is stated in the capital clause of the Memorandum of Association as the share capital
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Authorised Share Capital, i.e maximum amount a company can raise in its lifetime is to be mentioned in the Capital Clause of the Memorandum of Association.

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