capital

1. (share capital) A fund representing the nominal value (see *authorized capital) of shares issued by a registered company. In the case of a limited company, this fund is subject to rules intended to protect creditors. Thus, subject to some important exceptions, a company cannot issue shares at less than their nominal value, acquire its own shares (but see capital redemption reserve), or provide *financial assistance for others to acquire them. Furthermore, dividends may not be paid out of capital. See also *reduction of capital.
2. See *loan capital.