ExpertEasy1 markMultiple Choice
ACCA · Question 34 · Corporate and Business Law
What is the minimum allotted share capital required for a public limited company (PLC) to obtain a trading certificate under the Companies Act 2006?
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:
A.
£1
B.
£12,500
C.
£50,000
D.
£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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