ExpertEasy1 markMultiple Choice
ACCA · Question 35 · The formation and constitution of business organisations
Section A
What is the minimum allotted share capital required to form a public limited company (plc) in the UK?
Section A
What is the minimum allotted share capital required to form a public limited company (plc) in the UK?
Answer options:
A.
£1
B.
£12,500
C.
£50,000
D.
£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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