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.
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Corporate law
All public companies within the European Union are required to hold at least £50,000 in capital stocks.
Banking regulation
References
Minimum capital Wikipedia(Text) CC BY-SA