CURRENT AFFAIRS

Detailed explanation-1: -Authorized Capital, Registered Capital, Nominal Captial are the following terms used for maximum capital which the company can raise in its lifetime.

Detailed explanation-2: -The maximum amount of share capital a company is allowed to raise is called its authorized capital.

Detailed explanation-3: -The minimum amount of the authorised capital should not be less than 1lakh. There is no maximum limit.

Detailed explanation-4: -As per section 2(8) of companies act, 2013 ‘Authorised capital’ is the maximum amount of the capital for which shares can be issued by the company to shareholders. It is mentioned in the Memorandum of association of company, decided prior to the incorporation of the company.

Detailed explanation-5: -Authorised capital of a Private Limited Company: Authorised capital marks the maximum share capital out of which shares can be issued in a private limited company. This authorised capital is usually cited in the Memorandum of Association of the company and is mostly fixed as ₹100,000.