Question

what is meant by authorised capital ????​

Answer 1

Answer:

Authorized share capital—also known as "authorized stock," "authorized shares," or "authorized capital stock"—refers to the maximum number of shares a company is legally allowed to issue or offer based on its corporate charter. ... A company's authorized share capital will not increase without shareholder approval.

Answer 2

Explanation:

• The authorised capital of a company (sometimes referred to as the authorised share capital, registered capital or nominal capital, particularly in the United States) is the maximum amount of share capital that the company is authorised by its constitutional documents to issue (allocate) to shareholders.
• For Example: Suppose a firm has an authorized capital of Rs 50,00,000, then it can issue shares worth up to Rs 50,00,000 to its shareholders and cannot issue anything beyond it.
• The only real rule is that the authorized capital has to be at least Rs. 1 lakh for a Private Limited Company in India today. Anything more than Rs. 1 lakh and the Stamp Duty which you have to pay to incorporate your Company increases, and you have to pay this at the time of incorporation itself.