Statutory Capital
/ˈstætjutɔri ˈkæpɪtl/
Definitions
- (n.) The amount of capital that a company is authorized to raise through the issuance of shares as specified in its constitutional documents or statute.
The company's statutory capital is stated in its articles of incorporation.
Forms
- statutory capital
Related terms
See also
Commentary
Statutory capital is a formal, legal parameter distinct from actual capital raised; it is crucial to specify accurately in corporate charters to define the maximum share issuance.
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.