What is share capital clause?

The share capital clause is a provision in a company's constitutional documents, such as its articles of association, that outlines the total amount of share capital the company is authorized to issue, along with the types and classes of shares available. It specifies the rights attached to different classes of shares, including voting rights and dividend entitlements. This clause is essential for investors and regulatory bodies as it provides clarity on the company's capital structure and potential for future fundraising.