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what is authorised capitla and subscribed capital
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Answer Posted / dilip
Authorised capital or nominal capital is the maximum amount
of capital which a company can raise from varoius persons
by way of issue of shares i.e.Out sidres, Directors and
their relatives or any other party and is mentioned in the
Object clause of the memorandum of association of the
company.In other words, the authorised capital is the
maximum amount of capital with which the company has been
registered with the Registrar of companies after payment of
appropriate fees, beyond which the company can not issue
the shares to any body.
Subscribed capital is that portion of the Authorised or
nominal capital which has been issued by the company and
has been subscribed by various persons.
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