Authorized capital is the maximum (nominal) amount for which
share
The portion of registered capital of a private or public limited company
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shares (
share
The portion of registered capital of a private or public limited company
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stocks) can be issued. The amount of authorized capital is set in the
articles of association
A document, drawn up when a Dutch company or legal person is set up, and which regulates the operations of the company and defines its purpose.
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Articles of Association of the legal person. Only legal persons with
share
The portion of registered capital of a private or public limited company
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share capital, like limited companies, have authorized capital.
Following the entry into force of the flex-limited, the authorized capital for a Dutch
private limited company ( Ltd.)
A legal person of which the registered capital is divided in shares
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private limited company is optional. According to Dutch law at least 1/5th of the authorized capital for a public limited company must be subscribed. As the paid-up part of the subscribed capital has to be at least € 45.000, the authorized capital of a Dutch public limited company is usually € 225.000.