Minimum capital

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 asset base to satisfy the claims of creditors.

Contents

Corporate law

All public companies within the European Union are required to hold at least £50,000 in capital stocks.

  • UK insolvency law

Banking regulation

Main article: Capital requirement

See also

Notes

References

  • J Armour, 'Legal Capital: An Outdated Concept?' (2006) 7 EBOR 5

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