authorised share capital
Under the Companies Act 1985 shares may be issued by the company to shareholders in return for cash or other value equal to or greater than its nominal value. Shares in the authorised share capital are available to be issued. The issued share capital refers to shares which have been allotted and issued and held by shareholders. Not all of the authorised share capital needs to be issued. When shares are issued the person subscribing must pay cash or equivalent value of at least the nominal amount. Where the share is worth more than its nominal amount, a premium may also be paid.

Easyform Glossary of Law Terms. — UK law terms.


authorised share capital
The amount of capital that a company is authorised by its shareholders to issue. The amount of authorised share capital together with the number and nominal value of the shares into which it is divided must be stated in the company's memorandum of association. The amount of authorised share capital can be increased by an ordinary resolution of the shareholders.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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