Practicing Success
Practicing Success
CUET Preparation Today
| What is subscribed capital for a company? |
Capital stated in MOA Maximum capital company issue during its lifetime Part of authorized capital issued to the public Part of the issued capital subscribed by public |
| Part of the issued capital subscribed by public |
| Subscribed Capital: It is that part of the issued capital which has been actually subscribed by the public. When the shares offered for public subscription are subscribed fully by the public the issued capital and subscribed capital would be the same. It may be noted that ultimately, the subscribed capital may be equal to or less than issued capital. In case the number of shares subscribed is less than what is offered, the company allots only the number of shares for which subscription has been received. In case it is higher than what is offered, the allotment will be equal to the offer. In other words, the fact of over subscription is not reflected in the books. |
