Legal Question in Business Law in Virginia

Explain to me about what authorized shares is..does that mean the Director's listed are the owners of the business an if....the amount of shares are a 100 so does that mean the Director's own 50/50?


Asked on 3/13/11, 2:33 pm

1 Answer from Attorneys
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I can tell you this. Authorized shares simply means the total number of shares the company can sell and issue. Directors don't necessarily own shares nor are they entitled to shares of stock absent an agreement with the corporation. Of course there may be agreements in place that need to be analyzed. Consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 3/14/11, 4:27 pm


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