"Authorized shares" refers to the number of shares the corporation is allowed to issue under its certificate or articles of incorporation. Outstanding shares are shares of stock that have been issued.Authorized stock is the maximum number of shares that a corporation is legally permitted to issue, as specified in its articles of incorporation. After forming a cooperation, what is the appropriate number of authorized shares to start with? Learn about the par value and issuance of company stock. Authorized stock refers to the maximum number of shares a company is legally permitted to issue, as outlined in its corporate charter. Most companies start with 5000 shares or less, but that can be changed. Find out how to change the number of authorized shares for your Delaware company. Complete, sign, and record the requisite paperwork, fill out any government forms, and voila, your startup has issued stock to its cofounders. Authorized shares is the maximum number of shares that the board of directors is "authorized", or allowed to issue.