Authorized Capital

Authorized capital, or authorized share capital, represents the maximum value of shares a company can issue to shareholders. It encompasses all share categories a company is permitted to distribute to raise funds. Essentially, it’s the upper limit of equity capital a company is legally allowed to offer, as outlined in its corporate charter. This figure indicates the potential scale of share issuance for financing, though not all authorized shares are necessarily issued. It provides flexibility for future fundraising while setting a ceiling on equity dilution.