Ali Plc with issued capital of #500,000 in #1.00 shares has for now requested shareholders to pay only 50k for each #1.00 share. The amount requested from t...

Ali Plc with issued capital of #500,000 in #1.00 shares has for now requested shareholders to pay only 50k for each #1.00 share. The amount requested from the shareholders by the company is called?

Answer Details

The amount requested from the shareholders by the company is called the "called-up capital." In this scenario, Ali Plc has an issued capital of #500,000 in #1.00 shares but has requested shareholders to pay only 50k for each #1.00 share. This means that the total amount the company has called for is #250,000 (50k x 500,000 shares). The called-up capital is the amount of money that a company has requested its shareholders to pay for the shares they have subscribed to, but they may not have paid the entire amount yet. Once the shareholders pay the called-up capital, it becomes "paid-up capital."