Section A

What is the minimum allotted share capital required to form a public limited company (plc) in the UK?

Answer options:

£1

£12,500

£50,000

£100,000

How to approach this question

Recall the statutory minimum capital requirement for a plc.

Full Answer

C.£50,000✓ Correct

Under the Companies Act 2006, a public limited company must have a minimum allotted share capital of £50,000 (the 'authorized minimum'). At least one-quarter of this (£12,500) plus any premium must be paid up before it can commence business.

Common mistakes

Confusing the allotted minimum (£50,000) with the paid-up minimum (£12,500).

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Practice the full ACCA LW — Corporate and Business Law Practice Exam 5

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