Question : Authorised Capital means-
Option 1: It is the minimum amount of capital which the company is, for the time being, authorised to raise
Option 2: It is the maximum amount of capital which the company is, for the time being, authorised to raise
Option 3: It is the Pro-rata amount of capital which the company is, for the time being, authorised to raise
Option 4: None of the above
Correct Answer: It is the maximum amount of capital which the company is, for the time being, authorised to raise
Solution : As per section 2(8) of the Companies Act, 2013, Authorised Capital means such capital as is authorised by the Memorandum of a company to be the maximum amount of Share Capital of the company.
Hence, the correct answer is option 2.
