chartered capital
[CHAR-terd KAP-i-tul]
nounpl: chartered capitals
capital social
1. The amount of money or assets that a company is authorized to raise by issuing shares, as specified in its charter or articles of incorporation
The company's chartered capital was set at $5 million when it received its corporate charter.
O capital social da empresa foi estabelecido em 5 milhões de dólares quando ela recebeu sua carta constitutiva.
2. The legal maximum amount of capital that a corporation is permitted to issue according to its founding documents
Before issuing new shares, the board must ensure they do not exceed the chartered capital limit.
Antes de emitir novas ações, o conselho deve garantir que não excedam o limite do capital social.
This is a formal legal and financial term used internationally in corporate governance. In Brazil, the concept is regulated by the Lei das Sociedades por Ações (Law of Joint-Stock Companies). The term reflects the distinction between the capital a company is authorized to raise versus what it has actually raised and paid in, which is an important distinction in corporate finance and shareholder law.
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