Finance:Minimum capital
Minimum capital is a concept used in corporate law and banking regulation to stipulate what assets the organisation must hold as a minimum requirement. The purpose of minimum capital in corporate law is to ensure that in the event of insolvency or financial instability, the corporation has a sufficient equity base to satisfy the claims of creditors. In banking and financial regulation it is normally referred to as the capital requirement.[1]
Corporate law
All public companies within the European Union are required to hold at least €25,000 in capital, although many countries go above this minimum requirement.[2][3] The requirement is e.g. £50,000 in the United Kingdoms (England and Wales), of which at least 25% must be paid up (of the nominal amount and of any premium).[4]
Banking regulation
- Basel II
- Capital Requirements Directive
- Leverage
See also
- Banking regulation
- Corporate law
- UK insolvency law
References
- ↑ Armour, John (2006). "Legal Capital: An Outdated Concept?". European Business Organization Law Review 7: 5–27. doi:10.1017/S156675290600005X. https://ssrn.com/abstract=910826.
- ↑ Directive (EU) 2017/1132 of the European Parliament and of the Council of 14 June 2017 relating to certain aspects of company law
- ↑ "Minimum capital requirement around the world - DLA Piper Guide to Going Global". https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=03-minimum-capital-requirement.
- ↑ "Minimum capital in UK - England and Wales - DLA Piper REALWORLD". http://www.dlapiperrealworld.com/law/index.html?t=corporate-vehicles&c=GB-ENG-WLS&s=setting-up-a-corporate-vehicle&q=minimum-capital.
External links
 |  |
