3. Authorized Capital
• Authorized capital is the maximum capital that
a company is authorized to raise
• It is the sum mentioned in the capital clause of
Memorandum of Association
• This limit cannot be exceeded unless the Memo. of
Association is altered
4. Issued Capital
• Issued capital means that part of the authorized
capital, which has been offered for subscription to
members
• Includes shares allotted to members for
consideration
5. Subscribed Capital
• Subscribed capital means that part of the issued
capital at nominal or face value which has been
subscribed or taken up by purchaser of shares in
the company and which has been allotted
6. Called up Capital
• Called up capital is a part of subscribed capital which has
been called up by the company for payment
• For example, if 10,000 shares of Rs. 100 each have been
subscribed by the public and of which Rs. 50 per share has
been called up
• The subscribed capital of the Company works out to Rs.
1,00,000 of which the called up capital of the Company is
Rs. 50,0000
7. Paid up Capital
• Paid Up capital refers to that part of the called up capital
which has been actually paid by the shareholders
• Some of the shareholders might have defaulted in paying
the called up money
• Such defaulted amount is called as arrears
• From the called up capital, calls in arrears is deducted to
obtain the paid up capital
