Which of the following is called Registered capital of a company?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Nominal Capital
Nominal Capital, also known as Authorised Capital or Registered Capital, is the maximum amount of share capital that a company is legally permitted to issue to its shareholders. This limit is fixed and specified in the Memorandum of Association of the company at the time of its registration (hence the term "Registered Capital"). A company cannot issue shares beyond the limit set by its Nominal Capital without following legal procedures to amend its Memorandum of Association
Other Options :
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Issued Capital: Portion of authorised capital actually issued to the public.
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Subscribed Capital: Portion of issued capital that investors have agreed to buy.
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Reserve Capital: Part of subscribed capital that will be called up only at the time of winding up.