Select the INCORRECT statement from the below given statements:-

To identify the incorrect statement, let's understand the hierarchy of share capital:

Authorized/Nominal Share Capital → Maximum capital a company can issue as per its MOA

Issued Share Capital → Part of authorized capital offered to public

Subscribed Share Capital → Part of issued capital actually subscribed by public

Called-up Share Capital → Part of subscribed capital that company has called for payment

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Now analyzing each statement:

Option 1: Nominal Share Capital is a part of Authorized Share Capital

Nominal Share Capital and Authorized Share Capital are the same thing - just different names for the same concept. One cannot be a part of the other. This is like saying "a student is a part of a student."

Option 2: Un-issued Share Capital is a part of Authorized Share Capital

Authorized Capital = Issued Capital + Un-issued Capital

This is correct as un-issued capital represents the portion of authorized capital not yet offered to public.

Option 3: Un-subscribed Share Capital is a part of Issued Share Capital

Issued Capital = Subscribed Capital + Un-subscribed Capital

This is correct as un-subscribed capital represents the portion of issued capital not taken up by subscribers.

Option 4: Called up Share Capital is a part of Subscribed Share Capital

Subscribed Capital = Called-up Capital + Un-called Capital

This is correct as called-up represents the amount company has asked shareholders to pay.

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Option 1 is incorrect because Nominal and Authorized Share Capital are identical terms, not a part-whole relationship.