Difference between Authorised and Paid up Share Capital
Authorized Share Capital (can see in Bye Law No 8) is the maximum amount of share capital a co-operative housing society can legally issue, set in its society Bye-Law, while paid-up share capital is the actual amount of money members of society have paid for shares.
Authorized Share Capital represents a housing society's potential for future fundraising, whereas paid-up share capital is the real capital available for current operations and is always less than or equal to authorized share capital.
Difference between Authorised and Paid up Share Capital in Housing Society
| Features | Authorised Share Capital | Paid up Share Capital |
|---|---|---|
| Definition | Maximum amount of share capital the co-op housing society can issue. | Actual amount received from society's Members for shares capital. |
| Limit | Set by the Promotor / Builder first time. | Must be less than or equal to authorized capital. |
| Change | Can be changed with amendments society bye-law. | Can be changed with amendments society bye-law. |
| Purpose | Represnt the potential for future fundraising. | Capital available for current operations. |
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