Question
Which of the following is not true about nominal
capital?Solution
Section 2(8) of the Companies Act 2013, defines “authorised capital” or “nominal capital” means such capital as is authorised by the memorandum of a company to be the maximum amount of share capital of the company. Nominal capital has all the above mentioned features in options, except that it is not a contingency capital. It is the basic capital of the company on which the company also pays stamp duty.
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