1. (c) St Patrick's Cathedral Grammar School Form 6 2005 Authorised and Issued Share Capital

2. (c) St Patrick's Cathedral Grammar School Form 6 2005 What is Capital? Capital is the cash investment in a business. Capital is the cash investment in a business. Often, if an owner does not possess the money to finance their business, they will take a partner or get a loan from a bank. Often, if an owner does not possess the money to finance their business, they will take a partner or get a loan from a bank. Capital can also be raised through the sale of shares. This is appropriately called “Share Capital”. Capital can also be raised through the sale of shares. This is appropriately called “Share Capital”.

3. (c) St Patrick's Cathedral Grammar School Form 6 2005 What is Authorised Share Capital? Authorised Share Capital is the amount of money a company declares that it intends to make through the sale of shares during its formation. It must pay Stamp/Capital Duty on this. Authorised Share Capital is the amount of money a company declares that it intends to make through the sale of shares during its formation. It must pay Stamp/Capital Duty on this. Stamp/Capital Duty is a fee that must be paid to the Companies Registration Office upon establishment of a company. Stamp/Capital Duty is a fee that must be paid to the Companies Registration Office upon establishment of a company.Companies Registration OfficeCompanies Registration Office Here is a list of these fees. Here is a list of these fees.fees

4. (c) St Patrick's Cathedral Grammar School Form 6 2005 What is Issued Share Capital? Issued Share Capital is the total capital raised through sale of shares, i.e. the amount of shares sold times the value of each. Issued Share Capital is the total capital raised through sale of shares, i.e. the amount of shares sold times the value of each. It cannot exceed the Authorised Share Capital unless the relevant Stamp Duty is paid. It cannot exceed the Authorised Share Capital unless the relevant Stamp Duty is paid.