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The authorised capital of a company sometimes referred to as the authorised share capital, registered capital or nominal capital, (particularly in the United States) is the maximum amount of share capital that the company is authorised by its constitutional documents to issue (allocate) to shareholders. Part of the authorised capital can (and ...
In accounting, the share capital of a corporation is the nominal value of issued shares (that is, the sum of their par values, sometimes indicated on share certificates).). If the allocation price of shares is greater than the par value, as in a rights issue, the shares are said to be sold at a premium (variously called share premium, additional paid-in capital or paid-in capital in excess of p
It includes share capital (capital stock) as well as additional paid-in capital. [1] The paid-in capital account does not reflect the amount of capital contributed by any specific investor. Instead, it shows the aggregate amount of capital contributed by all investors. However, the term has different definitions in different contexts.
The issued shares of a corporation form the equity capital of the corporation, and some corporations are required by law to have a minimum value of equity capital, while others may not need any or just a nominal number. The value of the issued shares is determined at the time they are issued and the value does not change, in relation to the ...
Some other scenarios for triggering a capital surplus include when the Government donates a piece of land to the company. The capital surplus/share premium account (SPA) is generally not distributable, but may be used to: write off the expenses/commission relating to the issue of those shares, or; make a bonus share issue of fully paid-up shares.
The owners of a private company may want additional capital to invest in new projects within the company. They may also simply wish to reduce their holding, freeing up capital for their own private use. They can achieve these goals by selling shares in the company to the general public, through a sale on a stock exchange.
At the end of 1989, ABC's authorised share capital was increased to US$1.50 billion and in June 1990, paid-up capital was raised to US$1.00 billion through an international share offering. In June 2006, ABC's shares were split 10 for 1 in order to boost trading activities by placing them in the same range as other shares quoted on the Bahrain ...
ECGC Ltd. is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is ₹3,190 crores and authorised capital is ₹5,000 crores. [4]