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The purpose of this FAQ is to clarify:

(a) the concepts of authorized share capital and paid up share capital; and
(b) how you might deal with the situation of investors who intend to buy shares in a collective company but who are presently unable to fund same.

Just for clarification authorized share capital is the amount of share capital a company can raise. If the maximum authorized share capital of a company is $100,000 then the company can only issue ...