Authorised share capital

The authorised share capital of a company is the maximum amount of share capital that may be issued by a company. This amount can be found by looking in the company’s memorandum of association. The authorised share capital must be disclosed on the face of the balance sheet or alternatively in the notes to the accounts. This is also referred to as “nominal share capital”.

 

reference: Business Studies / Accounting. Accounts & Finance Glossary. Jim Riley BA(Hons) MBA FCA // tutor2u

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