Q. Consider the following statements:

1. Nominal Capital is the maximum capital which the company can raise in its lifetime.
2. Subscribed Capital is the shares outstanding.
3. Reserved Capital is used in case of the winding up of the company.

Which of the above statements is / are correct?
Answer: 1, 2 and 3
Notes: Nominal (authorized) capital is the maximum that a company can raise during its existence. Subscribed capital is the part of the capital allotted to shareholders (outstanding shares). Reserved capital is a portion of uncalled capital that can only be called up at the time of winding up, making all three statements correct.