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

  1. ^ Companies Act 2006, note 843: http://www.legislation.gov.uk/ukpga/2006/46/notes/division/10/17/2

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