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asked on May 12, 2009 at 16:46
by   RICHARD
CAN YOU PLEASE ADVISE ;
1. BORROWINGS IS RM 40.0 MILLION
2. AUTHORIZED CAPITAL IS RM 10.0 MILLION
3. ISSUED CAPITAL IS RM 5.0 MILLION
WHETHER IT IS LEGALLY PERMITTED TO BORROW RM 40.0 MILLION AS THE AUTHORIZED CAPITAL IS ONLY RM 10.0 MILLION ?
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answered on Feb 12, 2010 at 22:27
by   Iman
a company can borrow as much as the lender allows it to borrow. the sum borrowed has nothing to do with the authorised and issued capital of the co. they are 2 different things.
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answered on Aug 20, 2010 at 11:00
by   tee kursk
Can somebody out there help me what does it mean by authorised and paid up capital? is paid up capital = total of money invested by shareholders in a company in the form of liquid cash and/or equipment/premise? does that mean who buy more shares (correct me if that is term is incorrect), they have more say and control of the company? what if the business is growing and it needs more money than the authorised capital, let's say it needs more money to buy vehicle to transport goods or buying a premise, is it allowed to buy it under a company's name but the amount is more than authorised capital? or does authorised capital means that the company can't buy anything/have money more than its authorised capital? if the limit of authorised capital was set low, can it be changed to higher value as the business expands?
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answered on Sep 3, 2010 at 01:20
by   nbc group
Authorised capital is just a maximum limit a company can issue its share (paid up capital). Authorised capital can be increased to any amount you like, but at a certain fee for certain higher thresholds. Paid up capital is actual form of cash/assets injected in return for share in the company. The more shares (voting power) you hold in a company, the more voting power you have. Normally a shareholder holding 51% is said controlling the company, as he/she can cast a majority vote. You can buy can regardless of any authorized capital amount. If the company get its money through raising its capital, then paid up capital is cap up to authorized capital. If authorized capital is too low, the company can increase the limit to any amount you like, but with certain fees.

http://www.nbc.com.my
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