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Authorised capital

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Title: Authorised capital  
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Subject: Direct debit dividend contributions, Financial accounting, Corporate law, T-model, Trade (financial instrument)
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Authorised capital

The authorised capital of a company (sometimes referred to as the authorised share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorised by its constitutional documents to issue (allocate) to shareholders. Part of the authorised capital can (and frequently does) remain unissued. This number can be changed by shareholders' approval. The part of the authorised capital which has been issued to shareholders is referred to as the issued share capital of the company.

In the United Kingdom, the concept of authorised share capital was abolished under the Companies Act 2006.[1]

See also

External links

  • Investorwords.com
  • Investopedia.com

References

  1. ^


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