What is the nominal share capital?

The correct answer is Option (2) → The maximum amount of share capital which a company is authorised to issue.

• Nominal Share Capital (also called Authorised Capital) is the maximum amount of capital that a company is legally permitted to raise by issuing shares, as stated in its Memorandum of Association.

• It represents the upper limit; the company cannot issue share capital beyond this amount without altering its Memorandum through legal procedures.