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Lemur [1.5K]
1 year ago
6

which number is potentially the largest? a. the number of shares certified. b. the number of shares authorized. c. the number of

shares issued. d. the number of shares outstanding.
Business
1 answer:
Ghella [55]1 year ago
6 0

The number of authorized actions may be the most important. Authorized share capital is the maximum capital a company can issue.

Permitted shares are defined as the maximum number of shares that a company is legally permitted to issue to investors at the company's own discretion. The maximum number is established in the company's legal incorporation documents, known as the articles of association.

If a company wishes to increase its authorized share capital, it must amend its charter, which usually requires a vote of the shareholders. This shareholder approval is important because a company that issues more shares will eventually dilute the ownership of existing investors.

To learn more about authorized share capital

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