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What is the definition of "effective capital of the company" as per the Indian company law?
  • a)
    Paid-up capital excluding reserves
  • b)
    Paid-up capital including reserves
  • c)
    Authorized capital excluding reserves
  • d)
    Authorized capital including reserves
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
What is the definition of "effective capital of the company"...
The effective capital of a company, as defined by Indian company law, refers to the paid-up capital excluding reserves. It is important to note this definition when calculating certain financial aspects related to managerial remuneration.
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What is the definition of "effective capital of the company" as per the Indian company law?a)Paid-up capital excluding reservesb)Paid-up capital including reservesc)Authorized capital excluding reservesd)Authorized capital including reservesCorrect answer is option 'A'. Can you explain this answer?
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