Types of capital, Business Law and Ethics

Types of Capital:

A company's capital at any given moment may consist of:

a)      NOMINAL OR AUTHORISED CAPITAL

This is the capital that is stated in the memorandum of association pursuant to S.5 (4) a) of the Act. It is called "nominal capital" because it is calculated on the basis of the "nominal" or book value of the shares into which it is divided. It is 'authorised' because once the memorandum of association is registered, the company can take immediate steps to raise the capital from the public without applying for a permit or license to collect the money.

b)      ISSUED CAPITAL

The issued capital is that portion of the nominal capital which is constituted by the nominal value of the shares which have been issued by the company. It is also known as the "subscribed capital" or "allotted capital". It may be less than, or equal to, the nominal capital but cannot exceed it.

c)      PAID-UP CAPITAL

The paid-up capital is constituted by the aggregate of the amount of money that is paid-up on each share issued by the company. It may be equal to or fewer than, the issued capital but cannot exceed it.

d)      CALLED-UP CAPITAL

A company's called-up capital is constituted by the amount due is respect of calls made by the directors on issued shares.

e)      UNCALLED CAPITAL

The uncalled capital is the amount not called up on shares which a company has issued. It is the nominal capital minus the called up and the paid-up capital.

Posted Date: 1/12/2013 3:01:15 AM | Location : United States







Related Discussions:- Types of capital, Assignment Help, Ask Question on Types of capital, Get Answer, Expert's Help, Types of capital Discussions

Write discussion on Types of capital
Your posts are moderated
Related Questions
A is large property developer who is listed on the Kuala Lumpur Stock Exchange. B is a building contractor. A employed B in 2008 to build a large office complex comprising 3 towers

State the linkages between policy research and policy decisions The linkages between policy research and analysis and policy decisions are complex and, often, problematic but t

Compulsory Change: Section 20(2) of the Act provides that within six months of registration with a particular name the registrar may direct a change in name if in his opinion

Mr. D is a professional basketball player who orders some shoes through the mail. The mail order house promises all customers delivery within 30 days of receiving the order. Mr. D'

Direct Deliveries Limited (DDL). which is a company that specialises in selling a variety of goods to small independent retailers has grown quickly in the last three years.

Q. Suggested actions for addressing phoenix activity? The following actions are suggested for addressing phoenix activity. Those that have been suggested are the actions that:

Advantages of Negotiable Instruments (i) A negotiable instrument provides a creditor regarding a better remedy, since once it has been issued like or accepted whether applicab

Define the term - Inaction and crises We know that the standard social planner does not show and delay or have tendency of inaction and adopts a policy as soon as it is proved

Proceedings at meetings - Held: Held: The resolution as passed was invalid since it was not the special resolution of which notice had been given.  Even the retention of 321 p

Hirer Requires Information from the Owner Conversely the hirer requires some information from the owner whether he should send him a written request so and then like pay to hi