ExpertEasy1 markMultiple Choice
ACCA · Question 36 · Capital and the financing of companies
What is the minimum allotted share capital required for a public limited company (PLC) under the Companies Act 2006?
What is the minimum allotted share capital required for a public limited company (PLC) under the Companies Act 2006?
Answer options:
A.
£1
B.
£12,500
C.
£50,000
D.
£100,000
How to approach this question
Memorize the statutory capital requirement for PLCs.
Full Answer
C.£50,000✓ Correct
Section 763 of the Companies Act 2006 states that the 'authorized minimum' share capital for a public company is £50,000. At least 25% of this nominal value (£12,500) plus any share premium must be paid up before the company can obtain a trading certificate.
Common mistakes
Confusing the allotted amount (£50,000) with the paid-up requirement (£12,500).
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