SHARE CAPITAL
A company's share capital be defined or categorized in following four ways:-
- Authorized capital :- This is the maximum amount of capital that can be raised by the company. It is fixed in the Memorandum of an association and the Articles of a company as required by the company's act. It is also known as NOMINAL CAPITAL.
- Issued Capital:- This is the amount of capital which company intends to raise at a given point of time.
- Subscribed Capital :- This is the capital which has actually been subscribed by individuals or firm.
- Paid up Capital :-This is the amount of capital that has been called and received against the subscribed capital.
Great post! I really love how you explain the different shared capitals of the company must have. I hope you can share more information like this. Anyway, you can also read more information about capitals, just browse here.
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