#TermoftheDay
- Authorised Share Capital
Suresh
Baskaran: Authorised share
capital is the maximum amount for which a company can issue shares to its
investors/shareholders. However, company can choose to
not to fully issue shares worth total authorised share capital. It can issue
shares at a later date also when it wants to raise capital. For example: If a
company's authorised share capital is 10 crore, it can issue shares worth 3
crore to its investors/shareholders and can keep remaining 7 crore worth shares
with the company itself for future fund raising.
Pawan Bajaj: Authorised Share capital is the maximum amount
by which company can raise the capital from Public. It is written in Memorandum
of Association and divided in the shares of Face value, it may be from Rs.1 to
Rs.10. Issued capital is part of Authorised capital
& Difference between Authorised capital and Issued capital can be issued by
company in future.
Ramlal: ASC is the maximum amount of share capital that
the company is authorized to issue to shareholders.
Sandhya G: AS is the max number of
shares a company can issue to its shareholders...to increase this limit,
shareholders approval and a fee payment to government is required. This amount
a mentioned in the memorandum of association of the company which is made when
u r applying for a company license. The company may or may not utilize this
limit completely.
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