This section replaces section 118(1) of the 1985 Act. Under section 118 the authorised
minimum is £50,000.This implements Article 6 of the Second Company Law Directive
which requires that in order that a public company may be incorporated or obtain
authorisation to commence business, a minimum capital shall be subscribed (see above). As
recommended by the CLR (Completing the Structure, paragraph 7.6), this section retains the
authorised minimum at £50,000. In contrast to the 1985 Act provisions, the section also
enables the minimum share capital requirement for public companies to be satisfied in
sterling or the prescribed euro equivalent (see subsection (1)).