What are Authorized Shares?

Authorized Stock: The maximum number of shares a company is allowed to issue. The maximum number of shares that can be issued by the company's articles of association. This number is generally listed in the capital account section of the balance sheet. Authorized shareholders refer to those investors who hold authorized shares of joint-stock companies. Authorized shareholders and rated shareholders are a pair of corresponding concepts.

Authorized shares

Right!
Authorized Stock: The maximum number of shares a company is allowed to issue. The maximum number of shares that can be issued by the company's articles of association. This number is generally listed in the capital account section of the balance sheet. Authorized shareholders refer to those investors who hold authorized shares of joint-stock companies. Authorized shareholders and rated shareholders are a pair of corresponding concepts.
Chinese name
Authorized shares
Foreign name
Authorized Stock
Meaning
Maximum number of shares allowed
Category
concept
A Power of Attorney authorizes others to act on behalf of a business in certain circumstances. A power of attorney is prepared by the client and empowers a person whom he trusts to make financial decisions for him when he has a mental or health problem that prevents him from taking care of his personal finances, such as Buy and sell properties, bank deposits and payments, pay taxes and other documents.
Joint Stock Company refers to a company that issues shares that can be sold on the secondary market. Shareholders need to bear the liability of the company's debt.
Authorized shareholders refer to those investors who hold authorized shares of joint-stock companies. Authorized shareholders and rated shareholders are a pair of corresponding concepts.
According to the laws of Britain and the United States, when a joint-stock company initiates its establishment, the share capital on which the joint-stock company relies can be formed in accordance with the authorization system, that is, after the registered share capital of the joint-stock company is subscribed by each share purchaser, the purchase of shares Participants only need to pay part of the shares at a certain percentage, instead of paying the full subscription. The established joint-stock company is still authorized to operate normally without fully realizing its registered share capital. The share capital that the joint-stock company has actually received is the basis and guarantee of financial and operating activities. For the company's capital that has not yet been realized, after the company opens, according to the needs of the situation, the company's board of directors can decide to adopt a certain method to publicly issue a certain amount of shares to the public to strengthen the company's capital protection. Follow the regulations of relevant authorities and the corresponding provisions in the company's articles of association. Shareholders who invest in the company in this way of authorization are called authorized shareholders. Authorized shareholders and rated shareholders are only differentiated according to different requirements for the form of subscription of share capital. The former authorization system can save the company from registering changes when adding shares. However, from the perspective of economic and legal relations, authorized shareholders and rated shareholders have the same shareholder rights and obligations, but the subscription of shares in the obligations of authorized shareholders is specifically embodied as part of the subscription, not the entire subscription.

IN OTHER LANGUAGES

Was this article helpful? Thanks for the feedback Thanks for the feedback

How can we help? How can we help?