The general performance of candidates in the question was very poor, and this was as a result of
lack of understanding of the topic and inability to express their ideas clearly.
The expected answers are:
(a) Authorized Share Capital: This is the total amount of share capital that a company is
allowed to raise. It is stated in the memorandum of association;
It is also call registered on nominal capital.
(b) Issued share capital: This is that part of authorized share capital offered for public
subscription.
(c) Called-up capital: It is that part of issued share capital that shareholders have been
ask to pay.
(d) Calls in arrears: It is that part of call-up capital that is yet to be paid by the
shareholders.
(e) Paid-up capital: It is that part of called-up capital for which payment has been
made.
