Maryland Authority to Issue Additional Shares refers to the legal power granted to a corporation incorporated in the state of Maryland to increase the number of authorized shares of its capital stock. This authority is outlined in Maryland's corporate laws and regulations, specifically in the Maryland General Corporation Law. When a corporation is initially formed, it is typically authorized to issue a specific number of shares of stock. However, as the business grows or requires additional funding, it may need to increase the number of authorized shares available. This is where the Maryland Authority to Issue Additional Shares becomes relevant. By having this authority, a Maryland corporation can issue new shares to existing shareholders, new investors, or through a public offering, without having to go through the process of amending its articles of incorporation. This flexibility provides corporations with the means to raise capital quickly and efficiently in order to meet their business needs. There are different types of Maryland Authority to Issue Additional Shares, which include: 1. General Authority: Under Maryland law, corporations are typically granted the general authority to issue additional shares. This enables corporations to increase their authorized share capital within certain limits defined by the state's laws, the corporation's articles of incorporation, or its bylaws. 2. Preemptive Right: In some cases, Maryland corporations may grant their existing shareholders a preemptive right to purchase additional shares before they are offered to outsiders. This right allows current shareholders to maintain their proportional ownership and prevents dilution of their ownership interest. 3. Specific Authority: If a Maryland corporation seeks to issue additional shares for a specific purpose, such as acquiring another company or executing a merger, it may require a separate authorization from its shareholders or the board of directors. This specific authority limits the purpose and scope of the additional share issuance. 4. Series Authority: A Maryland corporation may also be granted authority to issue preferred stock in various series with specific rights, preferences, and limitations. This enables corporations to raise capital by issuing different classes of shares with specific characteristics tailored to meet the needs of investors or business objectives. In conclusion, Maryland Authority to Issue Additional Shares is a crucial aspect of corporate governance, empowering Maryland corporations to increase their authorized share capital in order to raise capital, accommodate future growth, or pursue specific business objectives. Different types of authority exist, such as general authority, preemptive rights, specific authority, and series authority, depending on the corporation's goals and requirements. It is essential for corporations to understand and comply with Maryland's laws and regulations regarding the issuance of additional shares.