The Harris Texas Authority to Issue Additional Shares is a legal provision that grants a corporation based in Harris County, Texas, the power to increase its total number of shares. This authority enables the corporation to obtain additional capital, expand its operations, and meet the changing needs of its business. By exercising the Harris Texas Authority to Issue Additional Shares, a corporation can hold a meeting of its board of directors to pass a resolution allowing the issuance of new shares. These shares are typically offered to existing shareholders (known as preemptive rights) or to new investors, either individuals or institutional entities. There are various types of Harris Texas Authority to Issue Additional Shares that a corporation may utilize, depending on its specific goals and circumstances: 1. Public Offering: This type involves offering additional shares to the public through an initial public offering (IPO). It allows the corporation to raise substantial capital by selling shares on a stock exchange while also increasing public interest and financial visibility. 2. Private Placement: In contrast to a public offering, this type involves issuing additional shares to a select group of accredited investors. Private placements are typically conducted with less regulatory oversight and disclosure requirements compared to public offerings. 3. Rights Issue: Also known as a rights offering, this type allows the existing shareholders of a corporation to purchase additional shares at a predetermined price. It provides an opportunity for current shareholders to maintain their ownership percentage while potentially raising additional funds from them. 4. Stock Dividend: Instead of issuing cash dividends, a corporation may opt to issue additional shares to its existing shareholders based on their proportional ownership. This non-cash dividend increases the number of shares outstanding while maintaining the proportional ownership stake of shareholders. 5. Convertible Securities: This type involves issuing securities, such as convertible bonds or preferred shares, that carry the right to be converted into ordinary shares at a predetermined price and within a specified time frame. This allows the corporation to raise funds initially and potentially convert them to equity later. The Harris Texas Authority to Issue Additional Shares is a valuable tool for corporations, providing them with flexibility in raising capital, expanding their ownership base, and furthering their business objectives. However, it is essential for corporations to ensure compliance with applicable legal and regulatory requirements when exercising this authority.