authorised share capital.

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

31 October 2010 What is the Authorised Share Capital for a company?

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

31 October 2010 The authorised capital of a company (sometimes referred to as the authorised share capital or the nominal capital) is the maximum amount of share capital that the company is authorised by its constitutional documents to issue to shareholders.

At the start of a company, it is authorized to issue ascertain number of shares amounting to a certain sum of money. This is the authorized share capital. This may be raised subsequently by a resolution approved by the shareholders. However, not all of the initially authorized share capital needs to be issued. That part which has been issued is called issued share capital or subscribed share capital.

Message likes : 1 times

Ankur Garg

Ankur Garg (Expert)
Follow

31 October 2010 Agree with Sanjay Ji...

Kindly appreciate minimum paid up capital for a public company is Rs. 5 Lacs and for a private company is Rs. 1 Lacs.

So we can say that indirectly minimum authorised capital for a public company is Rs. 5 Lacs and for a private company is Rs. 1 Lacs, becaause paid up capital can not be more than authorised capital.

Regards

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2010 sir,
i wanted to know that,how can a company issue their share and for what amount.
(I mean to say that for, example: if a company wanted to take Rs:100,00,000.
from public then what should be the share capital of company.)

Querist : Anonymous

Querist : Anonymous (Querist)

25 November 2010 A new company going to incorporate and they wanted to issue share of Rs:100,00,000.
Then what should be there own capital.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
Follow

25 November 2010 Remember one thing Authorized capital of a company will always be more than or equal to issued share share capital.
Say if u want to issue Rs 100,00,000 from public then your authorised capital must be more than or equal to Rs 100,00,000.

So before going for issue always check your authorised capital.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now