Authorized share capital - also known as "entitled share” or "allowed share capital" - is the maximum number of shares that a company is authorized to issue or offer under the charter of that company. The authorized share capital of the company will not increase without shareholder approval.
To the company, authorized capital is the amount specified in the capital clause of the company's articles of incorporation. A company's authorized capital determines the number of shares a company can issue to its shareholders. If the company needs more capital, shareholders will need to change the capital clause through a special resolution of the General Assembly. In addition, increased authorized capital may be required to issue new shares or inject more capital into the company.
Following is the process by which the authorized share capital can be increased
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