Arizona Authority to Issue Additional Shares
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How to fill out Authority To Issue Additional Shares?
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FAQ
Either the directors or shareholders of a company may increase or decrease the number of authorised shares for a particular share class by amending the Memorandum of Incorporation (?MOI?) and filing a COR15. 2 with the CIPC.
The number of shares represents the authorized shares. 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.
The number of authorized shares can be changed by way of a vote from shareholders, typically during the annual shareholder meeting.
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 amount of capital stock that a company issues is usually initially stated in its company charter, which is the legal document used to start a corporation. However, a company commonly has the right to increase the amount of stock it's authorized to issue through approval by its board of directors.
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