Issued Share Capital
/ˈɪʃuːd ʃeə ˈkæpɪtl/
Issued share capital is the total value of shares that a company has actually distributed to its shareholders, representing the portion of authorised share capital that has been allocated and paid for.
Issued share capital is the total value of shares that a company has actually distributed to its shareholders, representing the portion of authorised share capital that has been allocated and paid for.
Issued share capital represents the actual shares your company has distributed to shareholders, not just what you're allowed to issue.
It's the real money that shareholders have invested in exchange for ownership stakes in your business.
Authorised share capital is the maximum amount your company can issue according to its constitution, whilst issued share capital is what you've actually distributed.
Think of authorised as your credit limit and issued as what you've actually spent.
Issued share capital determines ownership percentages and voting rights among shareholders.
It also affects your company's ability to raise future funding and impacts how profits and assets are distributed.
Your issued share capital appears on your company's balance sheet under shareholders' equity.
It must be reported in annual returns filed with the relevant company registry and forms part of your statutory accounts.
Yes, you can increase issued share capital by issuing new shares to existing or new shareholders.
This typically happens during funding rounds, employee share schemes, or when bringing in new investors.
Reducing issued share capital involves buying back shares from shareholders or cancelling existing shares.
This process requires following specific legal procedures and may need shareholder approval depending on your jurisdiction.
Issued share capital provides the baseline for calculating share prices and company valuation.
When combined with retained earnings and other equity components, it helps determine your company's total worth and individual share values.
