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.

Nominal capital
because it is the registered amount of capital in the memorandum of the company that can be called up by the company so also called registered capital

Authorized share capital, also known as nominal capital, refers to the maximum amount of capital that a company is allowed to raise by issuing shares to its shareholders. It is the total value of shares that a company is authorized to issue to the public. This amount is specified in the company's memorandum of association and can only be changed through a special resolution.

The authorized share capital represents the upper limit on the amount of funds a company can raise from its shareholders. It provides a measure of the financial capacity of the company and is an important factor for investors and creditors in assessing the company's financial position.

Key Points:

1. Definition: Authorized share capital is the maximum amount of capital that a company is allowed to raise by issuing shares to its shareholders.
2. Also Known As: It is also referred to as nominal capital.
3. Memorandum of Association: The authorized share capital is specified in the company's memorandum of association, which is a legal document that sets out the company's constitution and the rights and powers of its members.
4. Upper Limit: The authorized share capital represents the maximum amount of funds a company can raise from its shareholders.
5. Change Through Special Resolution: Any change to the authorized share capital requires a special resolution, which is a resolution passed by a majority of at least 75% of the shareholders' votes.
6. Importance: The authorized share capital provides a measure of the financial capacity of the company and is considered by investors and creditors when assessing the company's financial position.
7. Flexibility in Issuing Shares: Although the authorized share capital sets the upper limit, the company is not obligated to issue all the authorized shares. It can issue shares up to the authorized limit as and when needed, based on the company's funding requirements and market conditions.

In conclusion, authorized share capital, also known as nominal capital, is the maximum amount of capital that a company is allowed to raise by issuing shares. It represents the upper limit on the company's potential funding capacity and is an important factor for investors and creditors. Any change to the authorized share capital requires a special resolution, and the company has flexibility in issuing shares up to the authorized limit.