Types of capital, Business Law and Ethics

Types of Capital:

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


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.


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.


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.


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


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
Derivative action: In Nurcombe v Nurcombe Lawton L J stated that a derivative action is a procedural device for enabling the court to do justice to a company controlled by mis

Had France adopted OECD convention on bribery ahead of these transactions would the firm''s behavior have differed?why?

QUESTION 1 (a) Explain the word "conditions" in a contract (b) Describe the various types of conditions that may exist in a contract QUESTION 2 Explain the term "war

Alien Tort Claims Act Problem: You work at a New York law firm and have been invited by the partner you work for to attend a meeting with Mrs. Esther Kiobel and a dozen

Ex-Ship Contracts - Import and Export Trade Therefore whether goods are sold ex ship, such the duties of the seller are-like; (i) To deliver the goods to the buyer from suc

Patrick works in the same office as Marian and they do not work well together. One day, Marian got credit for a job well done and Patrick got angry over it. He walked int

Q. What is phoenix-like activities? Phoenix activity and phoenix-like activities Many activities are referred to as "phoenixing" which do display phoenix-like characteristic

Explain the mode of acquisition - occupation The mode of acquisition is occupation. It is a means by which a State can acquire territory which belongs to no other entity. The o

Describe the term- higher national income and interest rate This causes country B to adjust to point B with both a higher national income and interest rate. At this point the f

Strong and Weakness of Acts of Parliament: There an Act of Parliament may be said to possess the giving advantages: as; (i) Democratic in nature Now here it is democrati