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The treatment and transitional status of shares under the Companies Act have led to uncertainty in practice. To issue shares, a company must ensure its Memorandum of Incorporation (MOI) specifies the classes of shares and the number authorized for each class. The MOI must also detail the preferences, rights, limitations, and other terms for each class of shares. Any changes to the number of authorized shares or the terms associated with them require an amendment of the MOI through a company board resolution. This allows the board to increase or decrease the number of authorized shares or reclassify shares and amend terms related to authorized but unissued shares.