Changing your company’s shares
When you form a corporation, you must list the number of authorized shares of the corporation’s stock and the par value of those shares in the Articles of Incorporation. In order to update this information, Articles of Amendment must be filed with the state of incorporation.
Why it’s important
The information included in your Articles of Incorporation or in your Certificate of Authority (if you’ve registered to transact business in other states) is the official information the state has on record for your corporation. When that information changes, it also needs to be updated with the state.
- Submitting Articles of Amendment tells the state that the appropriate company representatives have consented to the change. For example, consent by the incorporator or the corporation’s directors or shareholders may be required.
- Approval by the state certifies that your company met state legal requirements and that the information has officially been changed with the state.