authority to issue shares
authority to issue sharesthe shares of a company, apart from those taken by the subscribers of the memorandum, are issued by the board of directors (subject to the condition that they may not issue shares beyond the amount fixed as the authorized capital of the company). The directors may issue shares only for an authorized purpose and in the best interests of the company. The authority that the directors require has to be given by an ordinary resolution of the general meeting or in the articles. Authority may be given for a particular issue or generally, and it may be unconditional or subject to conditions; the authority must state the maximum amount of the relevant securities that maybe allotted thereunder and the date on which it is to expire.
Collins Dictionary of Law © W.J. Stewart, 2006