You may spend time on-line trying to find the authorized record template that fits the state and federal specifications you need. US Legal Forms provides thousands of authorized types which are analyzed by experts. It is simple to download or print the Alabama Authority to Issue Additional Shares from the service.
If you currently have a US Legal Forms account, you can log in and then click the Down load switch. Next, you can full, change, print, or indication the Alabama Authority to Issue Additional Shares. Every single authorized record template you get is yours eternally. To obtain an additional duplicate for any acquired type, proceed to the My Forms tab and then click the corresponding switch.
Should you use the US Legal Forms internet site for the first time, adhere to the easy instructions below:
Down load and print thousands of record templates utilizing the US Legal Forms Internet site, which provides the most important variety of authorized types. Use specialist and express-certain templates to tackle your small business or personal demands.
The number of authorized shares can be changed by way of a vote from shareholders, typically during the annual shareholder meeting.
If a company wants to increase its authorized share capital, it has to amend its corporate charter, which usually requires a vote from its shareholders. This shareholder approval is important because a company issuing more shares will ultimately dilute the ownership of its current investors.
Issuing of extra shares will require a resolution to be passed by a general meeting of the company shareholders. The only way of avoiding diluting the company further by issuing shares to new investors is by existing shareholders taking up the extra shares on top of their own.
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.
In California, a corporation must authorize at least one share but may authorize any number.
When companies issue additional shares, it increases the number of common stock being traded in the stock market. For existing investors, too many shares being issued can lead to share dilution. Share dilution occurs because the additional shares reduce the value of the existing shares for investors.
Capital stock may be increased through the following acts: By increasing the number of shares and retaining the par value; or. By increasing the par value of existing shares without changing the number of shares; or. By increasing the number of shares and increasing the par value.