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so there has been an uncertainty in practice with regard to the transitional status and treatment of shares under the companies act with a number of questions being raised in this regard to issue these shares a company must first ensure that its memorandum of incorporation sets out the classes of shares and the number of shares each class that a company is authorized to issue in addition in respect of each class of shares the moi of a company must set out the preferences rights limitations and other terms associated with a class of shares the number of authorized shades of each class in the preferences rights limitations and other terms associated with a class of shares may only be charged by an amendment of the moi by a resolution of the board of the company who may increase or decrease the number of authorized shares of any classes or reclassify any classified shares that is amend the terms attached to such shares that have been authorized but not issue