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Under Section 2(8), 'authorised' (nominal) capital is:
AThe capital offered for subscription
BThe maximum amount of share capital authorised by the memorandum
CThe capital actually paid by members
DThe amount called up on shares
Answer & Solution
Correct answer: B. The maximum amount of share capital authorised by the memorandum
Authorised/nominal capital is the maximum share capital stated in the memorandum that the company is authorised to raise.
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