Question : Nominal share capital is ________.
Option 1: That part of authorized capital which is issued by the company
Option 2: That amount of capital whch is actually applied by the prospective shareholders
Option 3: That amount of capital which is actually paid by shareholders
Option 4: The maximum amount of share capital that the company is authorized to issue.
Correct Answer: The maximum amount of share capital that the company is authorized to issue.
Solution : Answer = The maximum amount of share capital that the company is authorized to issue.
Authorized, Registered, or Nominal Capital refers to that amount which is stated in the Memorandum of Association. This is the maximum capital for which a company is authorized to issue shares during its lifetime.
