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The following are the main components of Authorized Capital:
Authorized Shares: This means the maximum number of shares a Company can legally issue and it is specified in the MoA (Memorandum of Association) or AoA (Articles of Association) of a Company.
Total Value: Nominal Capital signifies the maximum amount of capital a Company can raise via share issuance. You can calculate it by simply multiplying the number of Authorized Share by the par value per share.
Par Value per Share: This denotes the nominal value assigned to each share & sets a minimum issuance price. Remember that Par Value may not necessarily show the market value of the shares.
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