Authorised Shares

Authorised Shares are the total number of shares your company is legally allowed to issue, as stated in your Memorandum of Incorporation (MOI).

Think of it like this…

Authorised shares set the ceiling. The maximum number of shares your company can ever issue, unless you update your MOI.

You don’t have to issue all of them upfront.

But you can’t issue more than this number without first changing your MOI through CIPC.

"Why do Authorised Shares matter?"

Authorised shares give your company room to:

  • Add new shareholders in the future
  • Offer shares to investors or employees
  • Divide ownership fairly between partners
  • Plan for growth without needing to amend your MOI every time

They don’t represent actual ownership yet — they’re simply the limit you’re allowed to issue from.

"Where are Authorised Shares recorded?"

They’re listed in your company’s MOI (Memorandum of Incorporation).

If you used the standard short-form MOI (CoR15.1A), it usually sets your authorised shares at 1,000 by default.

If you submitted a custom MOI, your authorised share total will be whatever you specified in that document.

"Do Authorised Shares equal ownership?"

No, not until they’re issued.

Only Issued Shares (the ones allocated to actual shareholders) count toward ownership, voting rights, and dividends.

For example:

If you’re authorised to issue 1,000 shares, and you’ve only issued 100, then the remaining 900 are unissued and have no ownership value yet.

"Can I increase my Authorised Shares?"

Yes, but you’ll need to:

  1. Amend your MOI
  2. Submit a CoR15.2 form to CIPC
  3. Get shareholder approval via a special resolution

Govchain can help you prepare and file everything to do this legally and correctly.

"How many Authorised Shares should I start with?"

If you’re unsure, the standard 1,000 shares is usually enough, especially for startups and small businesses.

It gives you flexibility without complicating your structure.

You can always increase it later if needed.

"How do I check or change my Authorised Shares?"

Govchain can review your MOI, confirm your current share structure, and assist with any changes, including issuing new shares or updating your authorised total with CIPC.


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