Publication of authorised, subscribed and paid-up capital
📚 Law Minded summary
If a company states its authorised capital on a notice, advertisement, letterhead or bill, it must state the subscribed and paid-up capital just as prominently.
Authorised capital is only a ceiling. Showing it alone lets a company look far larger than the money actually put into it, which is precisely what this prevents.
up capital. —
(1) Where any notice, advertisement or other official publication, or any business letter, billhead or letter paper of a company contains a statement of the amount of the authorised capital of the company, such notice, advertisement or other official publication, or such letter, billhead or letter paper shall also contain a statement, in an equally prominent position and in equally conspicuous characters, of the amount of th e capital which has been subscribed and the amount paid-up.
(2) If any default is made in complying with the requirements of sub-section (1), the company shall be liable to pay a penalty of ten thousand rupees and every officer of the company who is in def ault shall be liable to pay a penalty of five thousand rupees, for each default.