BU127 Lecture Notes - Lecture 18: Authorised Capital, Issued Shares, Treasury Stock
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BU127 Full Course Notes
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Shareholders" rights: voting: in person or by proxy, proportionate distributions of profits (dividends, proportionate distributions of assets in a liquidation. Separation of ownership and control: shareholders own, managers control: voting rights and the board of directors are used to give shareholders control. Board of directors internal (managers) and external (non-managers) President appointed by the board of directors. Manages the vice presidents of each functional area of the business. Authorized shares: the maximum number of share that can be sold to the public: this is frequently set to an unlimited amount to provide maximum flexibility to the corporation in terms of fundraising. Issued shares: authorized shares that have been sold: outstanding shares: issued shares that are owned by shareholders (investors) o. Treasury shares: issued shares that have been reacquired by the corporation. In canada, reacquired shares are usually cancelled. Unissued shares: authorized shares that have never been sold. Two primary sources of shareholders" equity o contributed capital.
