In most of commonwealth countries, there is this concept of authorised capital. Authorised capital refers to the maximum permissible amount of capital up to which the share capital of the company can be increased.
Abolishment of authorised capital for Singapore companies
The concept of authorised capital has been abolished. Which means Singapore incorporated companies are allowed to increase their capital up to unlimited amounts by way of further allotments. Similarly concept of premium on issue of shares (share premium) has been abolished as well. Which means that the shares issuance will no longer consist of par/face value and a separate share premium account. The whole amount paid on shares will be considered issue price per shares/face value of shares. This automatically also abolishes any discount on issuance of shares as well. In same manner as share premium, in case of discount on issuance of shares also, tge actual amount paid on shares will be considered as issue price per share/face value of shares. In case of any further queries in this regard you may fill in contact form below or contact any Corporate Services Provider.