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There has been uncertainty regarding the transitional status and treatment of shares under the Companies Act. To issue shares, a company must have its memorandum of incorporation (MOI) specify the classes of shares and the number authorized for each class. The MOI must also include the preferences, rights, limitations, and other terms for each class. Changes to the number of authorized shares or the terms associated with them can only occur through an amendment of the MOI, which requires a board resolution. This allows the company to increase or decrease authorized shares or reclassify shares and amend the terms of authorized but unissued shares.