The authorised capital of a company

Company

A company is a form of business organization. It is an association or collection of individual real persons and/or other companies, who each provide some form of capital. This group has a common purpose or focus and an aim of gaining profits. This collection, group or association of persons can be...

 (sometimes referred to as the authorised share capital or the nominal capital, particularly in the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

) is the maximum amount of share capital

Share capital

Share capital or issued capital or capital stock refers to the portion of a company's equity that has been obtained by trading stock to a shareholder for cash or an equivalent item of capital value...

 that the company is authorised by its constitutional documents

Constitutional documents

In relation to artificial persons, the constitutional documents of the entity are the documents which define the existence of the entity and regulate the structure and control of the entity and its members...

 to issue to shareholders. Part of the authorised capital can (and frequently does) remain unissued.

The part of the authorised capital which has been issued to shareholders is referred to as the issued share capital

Issued share capital

The issued share capital of a company is the total nominal value of the shares of a company which have been issued to shareholders and which remain outstanding . These shares, along with the share premium account, represent the capital invested by the shareholders in the company...

of the company.

In the United Kingdom, the concept of authorised share capital was abolished under the Companies Act 2006.