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 ?
Since the Bank was established, its authorized capital has already been increased six times.
At present,368 million manats (over $469 million) is being amounted by authorized capital of the IBA.
Authorized capital stock, which refers to the number of stocks that a firm may issue, is stated in a company's articles of incorporation, where changes may only be made with the approval of stockholders and regulators.
IIFCL, a wholly owned Government of India company, was incorporated on January 5, 2006 under the Companies Act, 1956 with an authorized capital of Rs.
Under our old authorized capital we had reached the limits of our ability to attract new capital.
The authorized capital of the bank has grown up to more than AZN 112.
Bank Technique OJSC (Azerbaijan) conducts authorized capital increase, which surpasses expectations of rating agencies.
Through our reincorporation and increase in authorized capital stock, we now have a capital structure that will support our acquisition strategy.
aBank) has increased its authorized capital up to the phenomenal level of banks in Azerbaijan.
As a result, its authorized capital has increased from 150,000,000 shares of common stock with a par value of $0.
has announced plans to double its authorized capital stock to P100 billion.
As a result, its authorized capital has increased from 75,000,000 shares of common stock with a par value of $0.

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