How Does a Company Increase Authorized Capital?
Authorized capital is the maximum amount of issued capital by the company to the subscribers. It is mentioned under the capital clause of the memorandum of association (MOA). It is also called nominal capital which can be increased as per the company’s requirement as it cannot issue shares more than its authorized capital. The benefits of the increase are growth in business, additional funds for shareholders, enhanced borrowing capacity, expanding share capital, etc.
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