"Authorized shares" refers to the number of shares the corporation is allowed to issue under its certificate or articles of incorporation. When you incorporate a business in California, you are required to state the number shares it will be authorized to issue.A simple guide to your company's startup equity capitalization, including how stock ownership affects your company and your own potential. If you have a corporation in California you're required to issue shares of stock - we break down what that means and what you need to do. The Authorized Shares represent the total potential number of shares that your corporation can issue over time. Authorized stock refers to the maximum number of shares a company is legally permitted to issue, as outlined in its corporate charter. Every state demands that you supply three basic facts about your business: its corporate name, its registered agent and the number of authorized shares. FOUR: This corporation is authorized to issue only one class of shares of stock, which shall be designated common stock. Authorized shares act as a ceiling for share issuance, preventing companies from diluting ownership beyond a predetermined point. If less than all of the authorized shares but all of the issued and outstanding.
