ExpertEasy1 markMultiple Choice
ACCA · Question 33 · Corporate and Business Law
What is the minimum allotted share capital required for a public limited company (plc) to obtain a trading certificate?
What is the minimum allotted share capital required for a public limited company (plc) to obtain a trading certificate?
Answer options:
A.
£10,000
B.
£50,000
C.
£100,000
D.
There is no minimum requirement.
How to approach this question
Recall the statutory minimum capital for a plc.
Full Answer
B.£50,000✓ Correct
Under the Companies Act 2006, a public company cannot commence trading until it has obtained a trading certificate, which requires a minimum allotted share capital of £50,000 (of which at least 25% must be paid up).
Common mistakes
Confusing the rules for private companies (no minimum) with public companies.
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