What is AUTHORIZED CAPITAL?

The maximum number of shares of COMMON STOCK a company is permitted to issue, per the terms of its ARTICLES OF INCORPORATION. Issuance in excess of authorized capital requires an amendment to the articles.

More On This Topic



Link to This Definition
Did you find this definition of AUTHORIZED CAPITAL helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary