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Riz is considering incorporating a public limited company. He is keen to ensure that the company is funded correctly, but not excessively, and is aware that the Companies Act includes a number of rules concerning share capital.
He has been advised to consider the following terms in connection with share capital and is seeking your advice.
(1) Issued share capital
(2) Paid-up share capital
(3) Called-up share capital
(4) Authorised share capital
Required
(a) Identify which concerns the number of shares held by shareholders (2 marks)
(b) Identify which concerns the amount of money a company has received for the shares held by shareholders (2 marks)
(c) State the rules concerning the minimum amount of issued and paid-up share capital of a public limited company (2 marks)
(Total = 6 marks)
