Authorized Capital
/ˈɔːθəˌraɪzd ˈkæpɪtl/
Definitions
- (n.) The maximum amount of share capital that a company is authorized by its constitutional documents to issue to shareholders.
The company increased its authorized capital to accommodate new investors.
Forms
- authorized capital
Related terms
See also
Commentary
Authorized capital sets the upper limit on capital issuance; actual issued capital may be less and requires formal amendment to increase.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.