Paid-up share capital

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Multiple Choice

Paid-up share capital

Paid-up share capital is the money shareholders have actually paid to the company in respect of shares it has issued. It reflects what the company has received from investors on issued shares, not the total amount it is allowed to issue or the nominal value of shares that may still be unpaid. If some issued shares haven’t been fully paid, the paid-up amount would be the portion that has been paid. Reserves are profits kept in the business and are not part of paid-up capital, and the total authorised share capital is simply the maximum amount the company may issue. The nominal value is the face value per share, which may or may not have all of its value paid up.

Paid-up share capital is the money shareholders have actually paid to the company in respect of shares it has issued. It reflects what the company has received from investors on issued shares, not the total amount it is allowed to issue or the nominal value of shares that may still be unpaid. If some issued shares haven’t been fully paid, the paid-up amount would be the portion that has been paid. Reserves are profits kept in the business and are not part of paid-up capital, and the total authorised share capital is simply the maximum amount the company may issue. The nominal value is the face value per share, which may or may not have all of its value paid up.

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