Share Capital and Types of Shares — SPCC STD 11 Commerce — Question

The amount of Share capital which is mentioned in the capital clause of company’s Memorandum of Association is called Authorised, Registered or Total Capital. For. eg. :The authorised share capital of the company is divided into 20 lath shares of U00 each. It mean authorised Share Capital of the company is 20 crores. The company can issue less than the authorised capital but not more than that. If in future company requires more capital then authorised then there should be provision in Articles of Association regarding this. Moreover consent is essential in the shareholders meeting and resolution is to passed.