Authorized Capital


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Related to Authorized Capital: authorized capital stock, Issued capital

Authorized Capital

 

the amount of capital specified in the charter or other agreement governing the establishment of capitalist enterprises, joint-stock companies, and various business associations as necessary to start up operations. The capital is raised through government appropriations, stock sales, and individual contributions (the last being extremely rare today). Authorized stock is also referred to as basic capital and share capital. In some countries (France, Federal Republic of Germany), enterprises and associations can be registered only if the amount of authorized capital conforms to certain legal requirements. In the USA and Great Britain, there are no such requirements.

The amount of authorized capital is much less than the amount of capital obtained through credits, investments, and bonds. Together with reserve capital, authorized capital constitutes the assets of an enterprise. Since the ratio of the authorized capital to the overall volume of economic activity is used in evaluating financial soundness, current high rates of inflation have led capitalist enterprises and banks to regularly increase the authorized capital by placing additional stock on the market.

E. D. ZOLOTARENKO

References in periodicals archive ?
In case the Annual General Meeting of Shareholders does not support the increase of authorized capital for stock or scrip dividend, no distribution will take place.
In July 5, 2010 NAC Kazatomprom JSC and Rosatom State Corporation signed a joint statement on the implementation of the project in the format of Uranium Enrichment Center 's participation in the authorized capital of the Russian company Ural Electrochemical Integrated Plant JSC.
By approving an amendment to the Articles of Incorporation, shareholders enabled the creation of authorized capital for the next two years in the amount of up to 2.5 million CHF or 500 000 shares.
The bank's authorized capital is over 55 million manats.
In early May last year, Russian President Vladimir Putin allowed RusHydro to increase its authorized capital in 20182020 by up to 13 billion rubles at the expense of the federal budget, ensuring the share of the Russian Federation not lower than the current 60.56% to finance the construction of two power lines Pevek - Bilibino.
In a disclosure to the Philippine Stock Exchange yesterday, Oriental Peninsula said it now owns 30 percent of Oriental Energy after the Securities and Exchange Commission's approval of the increase in the authorized capital stock of Oriental Energy from P30 million to P2 billion.
This bloc is composed of the remaining unissued shares out of Citystate's authorized capital stock.
DCI was incorporated in June 1990 and has an authorized capital stock of P5 million.
The Government of the Kyrgyz Republic has approved a draft agreement with Russia on the Kyrgyz-Russian Development Fund with an authorized capital of USD 500 million.
The authorized capital made up 13.9bln AMD, the profit 4.9bln AMD (the highest in Armenia's banking sector).
The authorized capital and paid-up capital of these companies amount up to Rs1.7 billion and Rs745 million respectively.
The authorized capital and paid-up capital of these companies is Rs9.61 billion and Rs747 million respectively.

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