Who is responsible for ensuring that the number of authorized shares of a company is never exceeded?

The registrar plays a crucial role in maintaining the integrity of a company's securities by overseeing the issuance and transfer of stocks. One of their primary responsibilities is to ensure that the total number of shares issued does not exceed the number of authorized shares, which are determined by the company's charter or bylaws. This supervision helps to protect shareholders by ensuring that the company does not dilute their ownership through the issuance of additional shares beyond the authorized limit without appropriate consent or adjustment.

In this capacity, the registrar keeps accurate records of share ownership and updates them according to transactions, ensuring compliance with regulatory requirements. Failure to adhere to the authorized share limit could lead to legal issues and undermine investor confidence, making the role of the registrar essential in sustaining the company's financial integrity.