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      Question

      _______________means such capital as is authorised by

      the memorandum of a company to be the maximum amount of share capital of the company
      A Nominal capital Correct Answer Incorrect Answer
      B Issued Capital Correct Answer Incorrect Answer
      C Subscribed Capital Correct Answer Incorrect Answer
      D Called -up Capital Correct Answer Incorrect Answer
      E Either (b) or (c) Correct Answer Incorrect Answer

      Solution

      Section 2(8) authorised capital- “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. 

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