A company has authorised capital of £9m. It has issued all the preference shares (value £4m) but only £3m of the ordinary shares. What term is used for the remaining £2m?

Question

Quizplus · Accepted Answer

The remaining £2m is called authorised but unissued share capital, which refers to the shares that a company is legally authorized to issue but have not yet been issued to shareholders. This capital can be used for future share issuance, to raise additional funds or for other corporate purposes.

A Company Has Authorised Capital of £9m