How Authorized Share Capital Works?

What is Authorized Share Capital?

– Authorised share capital remains the total amount of stake that the company can consider to allow stakeholders access. – However, the amount remains as specified in the articles of association – At times, the authorised share capital can also be called ‘authorised stock.

Arrow

Example of an Authorized Share Capital

– If a company has an authorised share capital of 500,000 shares, you should consider the share value of each unit.  – Several shares multiplied by the value of shares can assure you of the share capital under consideration. – However, share capital is allotted as per statutory requirements. At the same time, shares are sometimes kept in the treasury to maintain control of the capital.

Arrow

Types of Share Capitals

The term “share capital” often means slightly different things depending on the context.  When discussing the amount of money a company can legally raise through the sale of stock.  There are several categories of share capital: – Authorised Share Capital – Issued Share Capital

Arrow

How Authorized Share Capital Works?

Arrow

Learn More