Authorized capital

Japanese: 授権資本 - じゅけんしほん（英語表記）authorized capital

The amount of capital that a corporation is permitted to issue shares (authorized shares) with just a resolution of the board of directors. It was introduced after World War II, modeled on American law. A portion (at least one-fourth) of the total number of shares that can be issued as stipulated in the articles of incorporation (Article 37, Paragraph 1 of the Companies Act) must be issued at the time of the company's incorporation (in the case of private companies, there is no restriction on the number of shares issued at the time of incorporation (Article 37, Paragraph 3)), but the remainder can be issued after the company is established by a resolution of the board of directors, etc., as necessary. In a company with committees, the decision to issue shares can be delegated to executive officers (Article 416, Paragraph 4). This system facilitates the company's fundraising while limiting the decline in the shareholding ratio of existing shareholders.

Source: Encyclopaedia Britannica Concise Encyclopedia About Encyclopaedia Britannica Concise Encyclopedia Information

Japanese:

株式会社において，取締役会の決議だけで株式（授権株式）の発行が認められている資本金額。第2次世界大戦後，アメリカ法にならって導入された。定款に定める発行可能株式総数（会社法37条1項）のうち一部（4分の1以上）は会社の設立に際して発行しなければならない（非公開会社の場合は設立の際の発行株式数に制約はない〈37条3項〉）が，残りは会社成立後，必要に応じて取締役会などの決議によって発行することができる。委員会設置会社においては発行の決定を執行役に委任することができる（416条4項）。既存の株主の持株比率の低下の限度を画しつつ，会社の資金調達の便宜をはかった制度である。

出典　ブリタニカ国際大百科事典小項目事典ブリタニカ国際大百科事典小項目事典について　情報

<<: Shugen Shuyo Hiketsushu - Shugen Shuyo Hiketsushu

>>: Examination reference book - Jyukensankosho