authorised share capital

The authorised share capital of a private or public company is the value of the shares that the company is entitled to issue to shareholders. Authorised share capital may be issued or unissued. A company can change the value of the authorised share capital in a general meeting. The value of the issued shares cannot exceed the value set down in the memorandum of association for authorised share capital.

Usage: The authorised share capital of the company was raised from £100 to £1,000.

Related Words: company; private company; public company; memorandum of association; articles of association; share capital; shares; shareholder.