Authorised Capital
Definition
The maximum amount of share capital a company is permitted to issue under its constitution. It sets a ceiling; the company may issue less, which becomes its issued capital.
Related Terms in Business Terms
Paid-Up Capital
The amount of share capital that shareholders have actually paid for, as opposed to merely subscribed. It represents the real equity funding the company has received from issuing shares.
Share Premium
The amount received for shares above their nominal or face value. It is recorded in a separate reserve and its use is usually restricted by company law.
Capital Structure
The mix of debt and equity a business uses to finance its operations and growth. The balance affects risk, cost of capital and returns to owners.
Dividend Declaration
The formal decision by a company's board or shareholders to distribute part of its profits to shareholders. Once declared, a dividend becomes a liability until it is paid.
Stop memorising terms — let HelloBooks do the work
AI-assisted bookkeeping that handles invoicing, GST, reconciliations, and reports automatically. Free to start.