Tracking, adding, and updating authorized shares
Most companies need to keep track of the authorized shares approved by their board, and Carta has an easy way to do this.
1. Start by clicking on 'Shares' under Securities.
2. Navigate to 'Manage Share Classes,' then select 'Manage Authorized' in the dropdown.
A window will appear that will allow you to enter the Certificate of Incorporation filing date and the new authorized values.
3. Click the green "+" button to add a new authorization, or the gray "-" button to remove an authorization. Enter the new values, and then choose 'Update Authorized Shares.'
**Be sure to include the total value of each of the share classes in the new row. If you place 0, you will have 0 authorized shares for that share class**Once you begin tracking authorized shares, you'll receive a warning when you try to issue shares that exceed the number authorized. You'll also see progress bars in 'Edit share classes,' which show you how many shares you have available to issue.