authorized capital

noun

the aggregate par value or the total subscription price of all equity shares of a corporation authorized to be issued under its charter.

First recorded in 1910–15

A company cannot commence business until 10% of its authorized capital has been subscribed and paid for.

Ten millions of dollars was the authorized capital of the new board.

The total of the shares is called the authorized capital stock.

The authorized capital stock of the Junction Company was three millions, and that of the other company, two millions of dollars.

April 19, 2024tortuous

[tawr-choo-uhs ]

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