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Must a Corporation issue shares to shareholders?

Although a Corporation is a corporation, it does not necessarily have to issue shares to shareholders. A distinction is made between the "authorized shares" and "issued shares". The authorized shares are the maximum number of shares that a Corporation could issue as is defined in the Corporation’s Articles of Incorporation. The issued shares are shares that have been actually issued to its shareholders. For a Corporation founded as a one-person company, all shares are held in one hand: the founder. Capital is not necessarily needed. The shares of a Corporation do not necessarily have a nominal value.

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