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.

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.[1][2] 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).[3]

Banking regulation
Main article: Capital requirement

See also

Notes
  1. https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32017L1132&from=en
  2. https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=03-minimum-capital-requirement
  3. http://www.dlapiperrealworld.com/law/index.html?t=corporate-vehicles&c=GB-ENG-WLS&s=setting-up-a-corporate-vehicle&q=minimum-capital

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  • J Armour, 'Legal Capital: An Outdated Concept?'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