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Authorised shares

The maximum number of shares a company may place in addition to those already issued, should it decide to.

How to read the number

A headroom written into the articles in advance: while it lasts, a new issue needs only a corporate resolution, with no separate amendment of the articles.

When the metric lies

A large authorised headroom places nothing by itself, but it removes one obstacle to dilution — and frequently precedes it.

Also known as: authorised shares

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