Alteration in Authorized Capital
In relation to a company, Authorised Capital is the amount mentioned in the capital clause of the Memorandum of Association of the company.The company can raise capital up to this amount only. If the company wants more capital then the capital clause has to be amended.
The authorized capital of a Company determines the number of shares a Company can issue to its shareholders. An increase in authorized capital might be required for issuing new shares and/or inducting more capital into the Company.