What is meant by the authorized share structure of a company?

The authorized share structure of a company refers to the maximum number of shares that a company is allowed to issue to shareholders as specified in its articles of incorporation or bylaws. This structure establishes a cap on the total number of shares that can be created and distributed, which in turn helps the company regulate its capital structure and control ownership of the company.

Having an authorized share structure is crucial for corporate governance as it outlines the boundaries within which the company can grow or raise capital through equity financing. It provides clarity for both existing and potential investors regarding the extent of ownership potential and can influence investment decisions.

The other options provide definitions that do not accurately reflect the concept of an authorized share structure. For instance, the minimum number of shareholders required pertains to the requirements for a company's formation rather than its share capital. The type of shareholders a company must have does not relate to the issuance or limitations of shares themselves. Finally, the historical value of shares issued would instead refer to a company's accounting practices and does not define the concept of authorized shares.