Authorized Share Capital Increase
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Authorized Share Capital Increases
The number of stock units (shares) that a company can issue as indicated in its memorandum of association or articles of formation is known as authorised share capital. Management frequently does not use all of the authorised share capital in order to leave opportunity for future issuance of more stock if the company needs to obtain funds rapidly. Another reason to keep stock in the company treasury is to maintain control over the company.
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Who Should Purchase
Any company wishing to expand its authorized share capital or change its capital structure.
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FAQ's - Frequently Asked Questions
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It refers to the maximum amount of capital for which the Company can issue shares to shareholders. The authorized capital is included in the company’s Memorandum of Association under the heading “Capital Clause.” It is even decided prior to the company’s establishment. The authorized capital can be increased at any moment in the future by taking the proper legal processes.