Question

What is the mean by Authorized Capital...???​

Answer 1

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.

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Answer 2

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. 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.