authority to issue shares

authority to issue shares

the 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
References in periodicals archive ?
The resolution, which would have given the board authority to issue shares to individuals without offering the same terms to existing shareholders, was defeated by a 55-45 majority.
The Placing utilises the full extent of Baobab's existing authority to issue shares for cash.
Unless otherwise prohibited by the company's governing documents, the board of directors has the authority to issue shares of stock for adequate consideration.
The Gateshead business, which recently won an pounds 8m order for its eye-Train on-board digital CCTV systems, has called a general meeting for next Thursday when it will propose a resolution to give the board authority to issue shares.
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