Definitions for "Authorised Share Capital"
The maximum share capital the company is authorised to issue as per its article of association.
This is the highest amount of share capital that a company can issue. The amount is set out in the company's memorandum of association.
Authorised Share Capital, or ‘nominal capital', is the amount of share capital stated in the company's memorandum of association. The passing of an ordinary resolution, which is filed with a Form 123, can increase this figure. It is decreased by passing an ordinary resolution, with the company submitting a Form 122. When the authorised capital is being reduced the shares must be unissued.