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Short Answer on ___________Authorised Share Capital
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Answer Posted / ruba. g.
In Short: The maximum amount of share capital that a
company can issue. The limit can be changed by a
shareholder vote.
In Brief :Maximum value of securities that a firm can
legally issue. This number is specified in the memorandum
of association (or articles of incorporation in the US)
when a firm is incorporated, but can be changed later with
shareholders' approval. 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. Also called authorized capital,
authorized stock, nominal capital, nominal share capital,
or registered capital.
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