Anaheim, CA asked in Securities Law for California

Q: We'd like to issue shares in our company - do all the officers need to sign off?

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1 Lawyer Answer

A: When a Company issues shares, the "corporate formally" to do so, is a Board Resolution. In other words, it is the Board of Directors through a Board Resolution that authorizes the issuance of shares from the Corporate Treasury. It is not the officers but the Board of Directors who have this power. Generally, shares are issued because: 1) someone provided services to the Company; 2) someone signed a subscription agreement and wants to purchase shares in the Company, the funds to the corporate treasury; or 3) the shares are issued to acquire another business or property.

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