Form with which a corporation may alter the amount of outstanding shares issued by the corporation.
Shares Authorized Vs Issued In Arizona
State:
Multi-State
Control #:
US-0034-CR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
The number of authorized shares can be increased by the shareholders of the company at annual shareholder meetings, provided a majority of the current shareholders vote for the change.
If it does occur, a company has breached any agreement with those investors, employees or other parties that have been “issued” the excess shares. In addition to any conflict with these potential recipients, such over-issuances are often complex (but not impossible) to correct under state law.
Authorized shares are the total number of shares a company can legally issue, while issued shares are the number the company has issued to date. The number of authorized and issued shares may be the same or different, in which case there would be more authorized than issued shares.