statutory capital

USAGE SUMMARY

The phrase "statutory capital" is correct and usable in written English.
It is typically used in legal and financial contexts to refer to the minimum amount of capital that a company must maintain as required by law. Example: "The company must ensure that its statutory capital meets the requirements set forth by the regulatory authorities."

✓ Grammatically correct

Formal & Business

News & Media

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

7 human-written examples

In a statement, Hartford said that it expected that the deal would benefit its net statutory capital by $1.5 billion.

The New York Times

KUE was registered in May this year in Zurich with a statutory capital of 200,000 Swiss Francs ($194,870) and 20 shares.

The Guardian

The city, on the Río de Plencia (Butrón) near the inlet of the Bay of Biscay, is the statutory capital of the former lordship of Vizcaya, sacred to the Basques.

Britannica

The news release added, "Consistent with New York State insurance law, the New York State Insurance Department only approved the transaction after deciding that both companies would have sufficient statutory capital to meet the letter and spirit of the insurance law".

The New York Times

Their statutory capital requirements are thin and poorly defined as compared to other institutions.

Forbes

Also, in 1996 banks were allowed to count preferred issues as part of their statutory capital, which defines how much they can lend.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

53 human-written examples

In most of the states and territories, by constitution or statute, (as is shown in the supplemental brief of the plaintiffs in error,) all crimes, or at least statutory crimes, not capital, are classed as felonies or as misdemeanors, accordingly as they are or are not punishable by imprisonment in the state prison or penitentiary.

Cornell University

Thomas believes London mayors should be given powers to regulate private sector rents in the city and, as most if not all his Labour rivals are likely to do, advocates a specific statutory minimum wage for the capital.

The Guardian

Johnson backed the London Living Wage – a voluntary higher rate than the statutory national minimum, reflecting the capital's crazy living costs – and lobbied for amnesties for irregular migrants.

The Guardian - Opinion

Mr. Hungerford's conclusion that changes in the top statutory tax rate and the capital gains rate had no discernible effect on growth was at odds with a central tenet of conservative economic theory, and the study was withdrawn after Congressional Republicans raised concerns about methodology and wording.

The New York Times

In particular, we hypothesize that the issuances of financial instruments could be affected (1) by a targeted leverage ratio that minimizes the cost of financing (trade-off theory), (2) by asymmetric information and adverse selection (pecking order theory) and (3) by the statutory requirement to fulfill the capital regulation.

SERIEs

Expert writing Tips

Best practice

When discussing financial regulations, clearly define "statutory capital" to avoid ambiguity, as its specific meaning can vary by jurisdiction.

Common error

Avoid confusing "statutory capital" with general terms like "working capital" or "equity capital". "Statutory capital" specifically refers to the legally required minimum capital that a company must maintain.

Linguistic Context

The phrase "statutory capital" functions as a noun phrase, typically acting as the subject or object in sentences related to financial regulations and legal requirements. It's often used to describe the minimum capital a company must maintain as per legal statutes, as supported by Ludwig's examples.

Expression frequency: Uncommon

Frequent in

News & Media

33%

Formal & Business

33%

Encyclopedias

16%

Less common in

Academia

5%

Science

5%

Wiki

3%

Ludwig's WRAP-UP

In summary, "statutory capital" is a noun phrase that refers to the legally required minimum capital that a company must maintain. Ludwig AI confirms it's grammatically correct and usable, predominantly appearing in formal and business contexts, as well as in news and media. It is used to inform about financial regulations and legal requirements. Alternatives include "legal capital" or "required capital". While it's not an extremely frequent term, understanding its meaning is essential in financial and legal discussions.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

legal capital

Replaces "statutory" with its synonym "legal", maintaining the core meaning of legally required capital.

required capital

Focuses on the "required" aspect, omitting the specific legal nature but implying it.

legally required capital

More explicitly states that the capital is legally required.

minimum capital requirement

Specifies "minimum" and uses "requirement" instead of "capital", clarifying that it's the minimum amount mandated.

regulatory capital

Highlights the "regulatory" aspect, implying the capital is required by regulations.

prescribed capital

Uses "prescribed" to indicate capital that is mandated by law or regulation.

mandated capital

Emphasizes that the capital is "mandated", making the requirement more explicit.

capital adequacy requirement

Refers to the requirement for capital to ensure solvency, implying legal backing.

capital reserve requirement

Specifies that the capital is held as a reserve, with the "requirement" implying a legal obligation.

nominal capital

Indicates the face value of the stock.

FAQs

What does "statutory capital" mean in the context of insurance?

In insurance, "statutory capital" refers to the minimum amount of capital an insurance company must hold to meet regulatory requirements and protect policyholders. It ensures the company can cover potential claims and liabilities.

How is "statutory capital" different from "paid-up capital"?

"Statutory capital" is the minimum capital required by law, while "paid-up capital" is the actual amount of money shareholders have paid for shares. A company's paid-up capital must meet or exceed its statutory capital requirement.

What happens if a company's capital falls below the "statutory capital" requirement?

If a company's capital falls below the "statutory capital" requirement, it may face regulatory actions, such as restrictions on operations, fines, or even liquidation. Regulators require companies to maintain adequate capital levels to ensure financial stability.

Where can I find the "statutory capital" requirements for a specific industry or region?

Statutory capital requirements are typically defined in the laws and regulations of the relevant jurisdiction. Consult the specific industry regulations or contact the regulatory agency responsible for overseeing the industry in that region.