Types of capital, Business Law and Ethics

Assignment Help:

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.


Related Discussions:- Types of capital

Judicial elucidation of acts, Judicial elucidation of Acts: In fact th...

Judicial elucidation of Acts: In fact the other points to be noted in relation to judicial elucidation of Acts are as follows: like; (a)   There is no clause of an Act is t

Companys articles - meetings and resolutions, Companys articles - meetings ...

Companys articles - meetings and resolutions: The company's articles cannot deprive the members of the right to requisition a meeting under S.132 because the section requires

Define qualified and absolute privilege, 1. What is purpose of section 91 a...

1. What is purpose of section 91 and section 92 of the Constitution Act, 1982? 2. Explain the risk assumed by an unlicensed tradesperson (eg. Electrician or Plumber) when ent

Fraudulent preference, Fraudulent Preference: Under s.312, any disposi...

Fraudulent Preference: Under s.312, any disposition of the company's property and any creation of a charge, fixed or floating, effected during the period of six months before

Advantages of negotiable instruments, Advantages of Negotiable Instruments ...

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

Acceptance - law of contract, Acceptance - Law of Contract Converse...

Acceptance - Law of Contract Conversely an offer made to the general public can be established through anybody who fulfil that performs then the conditions stated therein.

Court, why is it important for a lawyer to address the victim

why is it important for a lawyer to address the victim

Explain important part in the international law, Explain important part in ...

Explain important part in the international law The Use of force is a controversial and complicated issue at international level. The United Nations (UN) Charter declared it un

Describe the definition of a valid contract, Question 1 It is significant ...

Question 1 It is significant for any person to know law as ignorance of law is no excuse. Modern USA law has been derived from some sources. Describe the primary and secondary sou

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd