Authorised Share Capital
Definition
The maximum number of shares a company is authorised to issue under its constitutional documents. The cap table must reflect the total authorised share capital and must show that the fully diluted share count does not exceed it. Authorised share capital is a ceiling on issuance, not a record of shares issued.
Common Misapplication
The most common misapplication is confusing authorised share capital with issued share capital. A company may have ten million shares authorised but only four million issued. The cap table must reflect both figures separately. Options and SAFEs that could result in share issuances must be assessed against the authorised limit before grant or issuance.
FFI Standard Reference
This term is defined and applied in Book 3, Section 3.1: The Cap Table Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Authorised Share Capital. https://ffistandard.org/glossary/authorised-share-capital/. 2026.