Authorised share capital is the maximum number of shares a company may issue.
Prior to The Companies Act 2006 a private company limited by shares was required to specify its authorised share capital in its memorandum of association. The concept of authorised share capital was abolished in the Companies Act 2006. Companies incorporated prior to 1 October 2009 are still restricted in the number of shares they may allocate by their authorised share capital unless their articles have been appropriately amended.