issued share capital

Think of a company like a big pot of jollof rice at a party. The authorised share capital is the whole pot the caterer prepared, enough to serve everyone who might show up. The issued share capital is the plates that have actually been served out to guests who paid or contributed something to be at the table.

So a company might be authorised by its documents to issue 10 million shares, but it may choose to only issue 4 million of them at the start. Those 4 million are the issued share capital. The remaining 6 million sit in reserve, waiting for a future date when the company needs more capital or wants to bring in new investors.

In Nigeria, when a small business in Lagos registers with the Corporate Affairs Commission, it must state its share capital structure. A tech startup might be authorised for 1 million shares of ₦1 each, but at incorporation the three founders only issue and take up 100,000 shares between them. That 100,000 is the issued share capital, and it tells you exactly how much ownership currently exists in the company, not how much could theoretically exist.

In the United Kingdom, this shows up clearly on Companies House filings. A private limited company might have an authorised capital far larger than what it has issued, giving directors room to bring in investors later without changing the company's constitution every time.

For a Nigerian in London sending money home to invest in a family business, issued share capital matters because it shows the real, current size of ownership on offer. It is the difference between what a company could sell and what it has actually sold, and that difference tells you how much room is left for new owners to come in.