authorized capital
[/ˈɔːθəraɪzd ˈkæpɪtəl/]
nounpl: authorized capitals
capital autorizado
1. The maximum amount of capital that a company is permitted to issue as shares, as stipulated in its articles of incorporation or bylaws
The company's authorized capital is set at $10 million, though it has only issued $6 million so far.
O capital autorizado da empresa é fixado em $10 milhões, embora tenha emitido apenas $6 milhões até agora.
2. The total value of shares that a corporation is allowed to issue according to its charter or constitutional documents
Before issuing new shares, the board must ensure it does not exceed the authorized capital.
Antes de emitir novas ações, o conselho deve garantir que não exceda o capital autorizado.
In Brazil, the concept of 'capital autorizado' is fundamental to corporate governance under Brazilian law. Companies typically define their authorized capital in their bylaws (estatuto social) during incorporation, and any increase requires shareholder approval. This differs from 'capital social integralizado' (paid-up capital), which represents the actual capital that has been contributed by shareholders. The distinction is crucial for regulatory compliance with CVM (Comissão de Valores Mobiliários) requirements.
Related Idioms & Phrases
increase authorized capital
within authorized capital limits
authorized capital reserve
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