Capital amount paid-up by share holders
Maximum amount of capital for which shares can be issued by the company
Total Share capital of the company
Total amount called-up on share capital
Answer is Right!
Answer is Wrong!
The correct answer is: B. Maximum amount of capital for which shares can be issued by the company.
Authorised share capital is the maximum amount of capital that a company is allowed to raise by issuing shares. It is stated in the company’s memorandum of association and cannot be changed without the approval of the shareholders.
The other options are incorrect because:
- Option A is the paid-up capital, which is the amount of money that shareholders have actually paid into the company.
- Option C is the total share capital, which is the sum of the authorised share capital and the issued share capital.
- Option D is the total amount called-up on share capital, which is the amount of money that shareholders have been asked to pay into the company.