Posted On: 12/15/2016 6:00:38 PM
Post# of 22940
The statute is permissive, not mandatory. Anybody who argues that the statue creates a situation were an unlimited AS is issued is not telling the truth. Furthermore, the articles of incorporation would have to be amended to take into account any share structure increases.
From reading the statue and explanations, this is purely a cost saving measure, which will cut approximately $9,700.00 off the companies expense sheet yearly. The company can not be blamed for dilution when it has issued no such shares, does not intend to issues such shares, and is subject the jurisdiction and laws of a state that do not cap the amount of authorized shares in the articles.
I would suggest people read the statute slowly.
From reading the statue and explanations, this is purely a cost saving measure, which will cut approximately $9,700.00 off the companies expense sheet yearly. The company can not be blamed for dilution when it has issued no such shares, does not intend to issues such shares, and is subject the jurisdiction and laws of a state that do not cap the amount of authorized shares in the articles.
I would suggest people read the statute slowly.
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