What is g. authorised share capital

Hi Guys,

Can anyone explain me what is Authorised Share Capital? I am not from finance background and I hardly understand finance terms. I am about to form a section 25 company. So I have the field to fill that is Authorised Share Capital.

Tks in Advance!

Sham

Replies (3)

It is maximum amount of Sh Cap, a co. can issue ....

It can b furthr increased...

Reg Fees depends on Auth Sh Cap

 

The ‘authorized share capital’ of a company  is the maximum amount of share capital that the company is authorised by its Memorandum of Association (a constitutional document of the company)  to issue to general public (in case of first issue) or existing shareholders (in case of further issue of shares) . Beyond this limit, the company can not issue shares to the public. Part of the authorised capital generally remains unissued. This number can be changed by shareholders' approval in their general meeting.  The part of the authorised capital which has been issued to shareholders is referred to as the ‘issued share capital’ of the company and  when the shareholders subscribe shares which have been issued, that share capital is called as the ‘subscribed share capital’. 

Authorised Capital is the maximum capital with which the Company is registered. The Company can raise the Capital to the extent of Authorised Capital.Howerevr the AC can be increased through shareholder approval in thei General Meeting.It is also called as Nominal Capital or Registered Capital.

Authorized share capital may be divided into

(1) Issued capital: par value of the shares actually issued.

(2) Paid up capital: money received from the shareholders in exchange for shares.

(3) Uncalled capital: money remaining unpaid by the shareholders for the shares they have bought.

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