What is the share capital requirement under CO?

• A. There is no share capital in CO
• B. Shares have a nominal value and require authorized capital
• C. There is a fixed minimum share capital
• D. Shares have no nominal value; no requirement to have authorized capital (different form issued capital)

Answer: (D)

Under the Companies Ordinance, shares can have no nominal value and there is no requirement to set up an authorized capital. This means the capital a company has is simply the amount represented by the issued shares that have been paid for, rather than a par value times a pre-set maximum of shares. There is also no fixed minimum share capital requirement. This is why the correct description is that shares have no nominal value and there’s no need for authorized capital—the issued capital is the relevant measure. The other options reflect older frameworks or incorrect ideas: nominal value with authorized capital, or a fixed minimum capital, which do not apply under the current CO.