According to the Companies Act, 2013, nominal capital` implies

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Q: 60 (CDS-I/2014)
According to the Companies Act, 2013, ‘nominal capital' implies

question_subject: 

Economics

question_exam: 

CDS-I

stats: 

0,9,47,11,9,26,10

keywords: 

{'nominal capital': [0, 0, 0, 1], 'share capital': [0, 0, 0, 1], 'capital': [31, 3, 12, 18], 'companies act': [0, 0, 0, 1], 'shareholders': [0, 0, 2, 3], 'such capital': [0, 0, 0, 1], 'company issues': [0, 0, 0, 1], 'payment': [0, 1, 1, 8], 'company': [2, 2, 8, 11], 'maximum amount': [0, 0, 0, 3]}

According to the Companies Act, 2013, the term "nominal capital" means the maximum amount of share capital that a company can issue. This implies that it is the upper limit of the share capital that a company can have. It is determined and mentioned in the Memorandum of Association of the company.

Option 1, "such part of capital, which has been called for payment," is not the correct interpretation of nominal capital. Nominal capital refers to the maximum amount of share capital and not the portion that has been called for payment.

Option 3, "such part of capital, which has been received by a company from its shareholders," is also an incorrect interpretation. While the nominal capital represents the maximum amount of share capital, it does not necessarily indicate the amount that has been received by the company from its shareholders.

Option 4, "such capital as the company issues from time to time for subscription," is not an accurate explanation of nominal capital. Nominal capital refers to the maximum amount of share capital and not the capital issued for subscription.

Therefore, option 2, "the maximum amount of share capital of a company," is the correct interpretation of nominal capital as per the Companies Act, 2013.

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