Definition
Authorized capital is the maximum amount of share capital a company is legally allowed to issue. Founders reach for it when a vague conversation needs a shared, specific meaning. Name it clearly, then let the next decision — a hire, a price, a test, or a pass — follow from that meaning.
In the room
How the word shows up in a real conversation.
A mentor asks, “What is your Authorized capital?” The useful answer is concrete: maximum amount of share capital a company is legally allowed to issue. A slide title is not an answer.
Common mistake
Using Authorized capital as a label instead of a fact. If you cannot point to the evidence — a number, a customer, or a written assumption — you are using the word as jargon.
See also
Authorized shares
Maximum number of shares a company can issue according to its charter.
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Authorized shares of stock
Total number of shares a corporation is permitted to issue to shareholders.
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Audit opinion
Professional judgment on the accuracy and fairness of financial statements.
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Audit report
Formal document summarizing audit findings and recommendations.
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