What is the minimum allotted share capital required for a public limited company (plc) to obtain a trading certificate?

Answer options:

£10,000

£50,000

£100,000

There is no minimum requirement.

How to approach this question

Recall the statutory minimum capital for a plc.

Full Answer

B.£50,000✓ Correct

Under the Companies Act 2006, a public company cannot commence trading until it has obtained a trading certificate, which requires a minimum allotted share capital of £50,000 (of which at least 25% must be paid up).

Common mistakes

Confusing the rules for private companies (no minimum) with public companies.

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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What is the minimum allotted share capital required for a public limited company (plc) to obtain a trading certificate?

How to approach this question

Full Answer

Common mistakes

Practice the full ACCA LW — Corporate and Business Law Practice Exam 1

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