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Issue authorization

Issue authorization

An issue authorization lets the board resolve on a share issue within limits set by the general meeting.

What is an issue authorization?

An issue authorization (Swedish: emissionsbemyndigande), often simply called an authorization, is a resolution by the general meeting giving the board the right to resolve on a share issue of, for example, shares, warrants or convertibles. The authorization applies within the limits set by the meeting and at most until the next annual general meeting.

 

Authorization and the ownership picture

When the board uses the authorization, it makes its own issue resolution. This may change the owners' holdings. The new shares must be registered with Bolagsverket and entered in the share ledger.

Record share issues
Henrik Kristensen, NVR
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Related terms

Issue resolution

An issue resolution is the decision to issue new shares or other securities.

Share issue

A share issue is when a limited company issues new securities, usually shares, to raise capital.

New share issue

A new share issue is when a limited company issues new shares for payment to increase its capital.

General meeting

The general meeting is the highest decision-making body in a limited company, where shareholders make decisions.