What is authorised share capital, and am i entitled to any of it if a company goes into liquidation.

Question

What is authorised share capital, and am i entitled to any of it if a company goes into liquidation.

Answer 1

No.  authorised share capital means that the company is authorised to issue a certain number of shares.  the shares can be issued at any price but anything above the nominal value should always be credited to Share Premium Account.  

If the company goes into liquidation then it might not have anything to give to its shareholders because all preferred creditors and ordinary creditors gets the first bite of the cherry.

Hope this helps.