The authorized capital in a joint-stock company is as follows:
The law stipulates that the authorized capital should not exceed ten times the issued capital in case it is specified. It is optional for the founders to include this provision in the company’s articles of association. If specified in the company’s articles of association or after incorporation through an extraordinary general meeting, this will facilitate the company when increasing the issued capital. The increase can be done through a decision by the board of directors as long as it is within the authorized limit. In case the issued and authorized capitals are equal, both can be increased through an extraordinary general meeting
For further in-depth details, refer to “Al-Wafi Book on Companies Law Theoretically and Practically”.
Doctor/ Mahmoud Mostafa Abdallah