Authorised shares
Also called: authorized shares, authorized stock
ELI5
The legal maximum number of shares the company can issue without amendment.
Used in conversation
“The financing requires increasing authorised shares.”
Definition
The maximum number of shares a company is permitted to issue under its constitutional documents.
Here “Authorised shares” means: The maximum number of shares a company is permitted to issue under its constitutional documents.
Pitch context
You will see “Authorised shares” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches cap table, ownership & dilution.
Why it matters: In cap table, ownership & dilution, a loose definition can change rights, obligations, approval, disclosure or enforceability.
Caution
Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.
Sources & evidence · 8
Direct term-level sources and supporting source families.
- National Venture Capital Association — Model Legal DocumentsDirect source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — Small Business Capital Formation GlossaryDirect source · primary · checked 2026-08-16
- OECD — G20/OECD Principles of Corporate Governance 2023Direct source · institutional · checked 2026-08-16
- U.S. Securities and Exchange Commission — EDGAR and filing resourcesDirect source · primary · checked 2026-08-16
- U.S. Securities and Exchange Commission — Exempt OfferingsSupporting source family · primary · checked 2026-08-16
- Y Combinator — Safe financing documentsSupporting source family · practitioner · checked 2026-08-16
- Y Combinator — Series A Term Sheet TemplateSupporting source family · practitioner · checked 2026-08-16
- National Institute of Standards and Technology — Computer Security Resource Center GlossarySupporting source family · primary · checked 2026-08-16