Nominal Capital in United Kingdom

Definition of Nominal Capital

In accordance with the work A Dictionary of Law, this is a description of Nominal Capital : (authorized capital, nominal capital)

The total value of the shares that a registered company is authorized to issue in order to raise capital. The authorized capital of a company limited by shares (See limited company) must be stated in the memorandum of association, together with the number and nominal value of the shares (See capital). For example, an authorized capital of £20,000 may be divided into 20000 shares of £1 (the nominal value) each. If the company has issued 10000 of these shares, it is said to have an issued capital of £10,000 and retains the ability, without an increase in capital (See alteration of share capital), to issue further shares in future. If the company has received the full nominal value of the shares issued, its *paid-up capital equals its issued capital. Where a company has not yet called for payment (See call) of the full nominal value, it has uncalled capital. Reserve capital is that part of the uncalled capital that the company has determined (by *special resolution) shall not be called up except upon a winding-up.