What is the minimum allotted share capital required for a public limited company (PLC) to obtain a trading certificate under the Companies Act 2006?

Answer options:

£1

£12,500

£50,000

£100,000

How to approach this question

Recall the statutory capital requirements for public companies.

Full Answer

C.£50,000✓ Correct

Under s.763 of the Companies Act 2006, a public company must have a minimum allotted share capital of £50,000 (the 'authorized minimum') before it can obtain a trading certificate and commence business. At least 25% (£12,500) must be paid up.

Common mistakes

Confusing the allotted minimum (£50k) with the paid-up minimum (£12.5k).

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 4

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