A nominal share capital is the total value of shares/securities that a company can legally issue. This number is specified in the memorandum of association and may often be referred to as the authorized share capital. It is usually required by law that at least 25 percent of this share capital should be issued.
The effect of the nominal share capital on the business can be felt where there is an increase or decrease in the share capital consequent on business performance or member's resolve. Furthermore, certain categries of companies are required to have certain tresholds of capital to conduct their sort of business.