The portion of share capital which the company has asked shareholder to pay is?

A. called-up capital
B. authorized capital
C. paid-up capital
D. unpaid capital

Correct Answer: Option A

A. called-up capital

Explanation

The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.

Paid-up capital is the amount of money a company has received from shareholders in exchange for shares of stock. Paid-up capital is created when a company sells its shares on the primary market directly to investors.

Unpaid share capital is where none of the monies due for an allotment of shares which have been issued has been paid. It is quite common in smaller companies for the share capital to be unpaid and remain due to the company indefinitely.

“called up capital “The value of the issued shares that have remained fully or partially unpaid, and whose holders have now been called upon to pay all the unpaid balance.