Authorized Share Capital Limit
What's new?
Company Administrators can now remove the authorized share capital limit on the company overview screen. When removed the number of shares the company can issue and reserve is unlimited.
How does it work?
The authorized share capital is set out in a company’s articles of incorporation. On the Company Overview screen a ‘Settings’ card has been added with the field ‘Set authorized share capital limit’. When this is toggled off, there is no restrictions on the number of shares the company can add and reserve on the platform.
When toggled on the company administrator can set the number of shares to be authorized. This will set a restriction for the number of shares that can be added and reserved on the platform. Additional Shares can be authorized on the company overview screen by clicking ‘Authorize additional shares’.
Why is it important and how am I affected?
There will be no change to existing company’s data on the platform with this release. Company Administrators can toggle the authorized share capital limit on or off at any time on the company overview screen.
If a companies authorized share capital limit is removed, the unallocated balance will not be shown on the Cap Table screen for company administrators or advanced investors. Instead, a breakdown of the companies share classes will be shown on the chart and table.
For more information on authorized shares see our learning hub article: Authorized Shares | Growth Platform (globalshares.com)