Stock Authorization Clause Samples
The Stock Authorization clause defines the total number and types of shares a company is permitted to issue, as established in its charter or articles of incorporation. This clause typically specifies the classes of stock, such as common or preferred shares, and sets upper limits on how many shares can be created and distributed to investors or founders. By clearly outlining these parameters, the clause ensures legal compliance and provides transparency to shareholders, preventing unauthorized issuance and helping manage ownership structure.
Stock Authorization. The total number of shares of capital stock that the Corporation shall have the authority to issue is one hundred fifty million (150,000,000) shares, which shall consist of (i) one hundred million (100,000,000) shares of Common Stock, par value ($0.0015) per share (the "Common Stock") and (ii) fifty million (50,000,000) shares of Preferred Stock, par value ($0.01) per share (the "Preferred Stock").
Stock Authorization. Subject to Schedule 2C and with the exception of any provision of the by-laws of the Purchaser, the Shareholder Agreement or this Agreement to the contrary, the Initial Shares shall be validly authorized and approved for issuance upon Completion, fully paid and non-assessable, free from any and all Encumbrances and issued in compliance with all applicable French Laws. Specifically with respect to the Contingent Shares, such approvals and authorizations shall remain in full force and effect for not less than twenty-six (26) months following the Completion Date