Shares are said to be authorized when they are

Source: JAMB · 2023

Shares are said to be authorized when they are

  1. called up
  2. offered for sale ✓
  3. paid-up
  4. subscribed
Explanation

Authorized shares are the maximum number of shares a company is allowed to issue according to its constitutional documents. When shares are offered for sale, they become authorized for issuance.

Called-up means payment is requested. Paid-up means money is received. Subscribed means investors have agreed to buy. These all happen after authorization.

Think of stages: Authorized (approved to issue) → Offered → Subscribed (ordered) → Called-up (payment requested) → Paid-up (money received).

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