Question

Total authorized share capital Rs. 15,00.000 @Rs.100 per share, what is the number of authorized shares? ​

Answer 1

The number of authorized shares is 15,000

Authorized Capital : It is the maximum amount of capital which can be issued by a company. This amount is specified in the Memorandum of Association drafted the company itself.

The company can not lawfully issue shares above the threshold of the authorized capital.

• Number of authorized shares =  share capital ÷ Value of 1 share

                                                          = 15,00,000 ÷ 100

                                                          = 15,000