stated capital
[/ˈsteɪtɪd ˈkæpɪtəl/]
nounpl: stated capitals
capital social declarado
1. The amount of capital that a corporation declares or reports in its articles of incorporation or bylaws as the value of issued stock or equity
The company's stated capital was $5 million when it was incorporated.
O capital social declarado da empresa era de 5 milhões de dólares quando foi incorporada.
2. In corporate law, the nominal or par value of shares that shareholders have committed to contribute to the company
The stated capital must be recorded in the corporate records and financial statements.
O capital social declarado deve ser registrado nos registros corporativos e demonstrações financeiras.
3. The legally declared amount of equity capital as opposed to the actual market value of the company
Although the company's market valuation exceeded $100 million, its stated capital remained at $10 million.
Embora a avaliação de mercado da empresa excedesse 100 milhões de dólares, seu capital social declarado permanecia em 10 milhões de dólares.
This term is primarily used in corporate and commercial law contexts. In Brazil, 'capital social' is fundamental to corporate law and must be formally declared in the Articles of Association (Ato Constitutivo). In the USA, the concept of stated capital is less emphasized in modern corporate law compared to historical usage, with preference given to 'authorized' and 'issued' capital terminology. The distinction between stated capital and actual company value is important for legal and tax purposes in both jurisdictions.
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