Authorised capital


Authorised capital

The authorised capital of a company (sometimes referred to as the authorised share capital or the 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 to shareholders. Part of the authorised capital can (and frequently does) remain unissued.

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

References


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • authorised capital — the total amount of capital which a company, by its memorandum of association, is authorised to offer for subscription. See also, paid up capital. Glossary of Business Terms …   Financial and business terms

  • authorised capital — /ɔθəraɪzd ˈkæpətəl/ (say awthuhruyzd kapuhtuhl) noun the amount of a company s capital which directors are able to raise through issuing shares without seeking the shareholders approval. Also, authorized capital …   Australian English dictionary

  • authorised capital — /ˌɔ:θəraɪzd kæpɪt(ə)l/ noun an amount of capital which a company is allowed to have, as stated in the memorandum of association …   Dictionary of banking and finance

  • capital — the total owned and borrowed funds in a business. Glossary of Business Terms (1) Usually refers to the total of the equity accounts in a firm. For a bank, the equity accounts are common and preferred stock, surplus, and undivided profits. For… …   Financial and business terms

  • Capital — Money invested in a firm. The New York Times Financial Glossary * * * capital cap‧i‧tal [ˈkæptl] noun [uncountable] 1. ECONOMICS money or property used to produce wealth: • Countries around the world are hungry for capital and economic… …   Financial and business terms

  • authorised stock — /ˌɔ:θəraɪzd stɒk/ noun same as authorised capital …   Dictionary of banking and finance

  • authorised share capital — Under the Companies Act 1985 shares may be issued by the company to shareholders in return for cash or other value equal to or greater than its nominal value. Shares in the authorised share capital are available to be issued. The issued share… …   Law dictionary

  • authorised person — A person who is authorised for the purposes of the Financial Services and Markets Act 2000 (FSMA) to carry out regulated activity. This term refers to: • A person who has a Part IV permission under FSMA to carry on one or more regulated… …   Law dictionary

  • Capital punishment in Sri Lanka — Capital punishment is legal in Sri Lanka. However, since June 23, 1976, there have been no executions, although death sentences were handed down continuously by the High and Supreme Courts for murder and drug trafficking convictions. These were… …   Wikipedia

  • capital adequacy — The principle upheld by banking regulators that banks should have, and be seen to have, a certain amount of capital relative to the amount of business which the banks undertake and the commercial risk associated with that business. UK banks… …   Law dictionary