What must a corporation do to issue new shares of stock?

To issue new shares of stock, a corporation must adhere to the legal and internal guidelines established in its Articles of Incorporation. These documents outline the structure and foundational aspects of the corporation, including the total number of shares authorized to be issued, the classes of shares, and any specific conditions or procedures that must be followed when issuing new shares.

When a corporation plans to issue new stock, it should first review its Articles of Incorporation to ensure compliance with any specified rules regarding share issuance. This may include obtaining necessary approvals, informing stakeholders, and adhering to any stipulations that may affect the issuance process. Following these guidelines is crucial to maintain legal compliance and corporate governance standards, ensuring that the actions taken by the corporation are legitimate and recognized under corporate law.

While options like conducting a public offering, providing a financial audit, or obtaining majority approval may be relevant in certain contexts, they are not universally required steps for all types of share issuances. The primary requirement remains adherence to the Articles of Incorporation and any relevant statutory provisions outlined in corporate law.