authorized share capital |
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Definition
Maximum value of securities that a firm can legally issue. This number is specified in the memorandum of association (or articles of incorporation in the US) when a firm is incorporated, but can be changed later with shareholders' approval. Authorized share capital may be divided into (1) Issued capital: par value of the shares actually issued. (2) Paid up capital: money received from the shareholders in exchange for shares. (3) Uncalled capital: money remaining unpaid by the shareholders for the shares they have bought. Also called authorized capital, authorized stock, nominal capital, nominal share capital, or registered capital.
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authorized share capital is in the Accounting & Auditing, Banking, Commerce & Finance, Corporate, Commercial, & General Law and Investing subjects.
authorized share capital appears in the definitions of the following terms: authorized stock, issued share capital, alteration of share capital and authorized capital
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