How Many Shares Should My Corporation Authorize and Issue?
May 5, 2010 at 3:45 pm Comments disabled
This post discusses the number of shares that a corporation should authorize, and the number of authorized shares that a corporation should issue.
On a couple of occasions, I have worked with founders whose corporations (prior to retaining me) issued a small number of their authorized shares.
In one instance, four founders formed a corporation that was authorized to issue 50,000 shares, but had issued (to themselves) fewer than 400. They asked me to help reallocate shares among them because, as time had passed, they saw that their respective contributions to the business differed from what they initially had expected.