Memorandum of Association …
Please i need more details on that
Answered 1 year, 1 month ago
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 (i.e. taken by the subscribers).
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.
From a lay-man's perspective you may regard it as the value of the company which you may issue to the shareholders according to the interest they should have in the company.
Finally, certain categries of companies are required to have certain tresholds of capital to conduct their sort of business.