Question : Name the head of Capital Clause of Memorandum of Association of a company in which the maximum amount of share capital mentioned is called______________.
Option 1: Reserve Capital
Option 2: Subscribed Capital
Option 3: Authorised Capital
Option 4: Issued Capital
Answer (1)
20th Jan, 2024
Correct Answer: Authorised Capital
Solution : Answer = Authorised Capital
The head of the Capital Clause in the Memorandum of Association of a company, where the maximum amount of share capital is specified, is called "Authorised Capital." This represents the total value of shares that the company is legally permitted to issue to shareholders.
Hence, the correct option is 3.
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