what is authorized capital
Answers
Answer:The authorized capital of a company is the maximum amount of share capital that the company is authorized by its constitutional documents to issue to shareholders.
Answer:
Paid-up capital is the amount of money a company has been paid from shareholders in exchange for shares of its stock. ... Paid-up capital can never exceed authorized share capital. In other words, the authorized share capital represents the upward bound on possible paid-up capital
Explanation:
Example of Authorized Share Capital
Imagine a company with an authorized share capital of one million common shares at a par value of $1 each, for a total of $1 million. However, the actual issued capital of the company is only 100,000 shares, leaving 900,000 in the company's treasury available for future issuance.