One of the founders should get 10% of the startup company on the formation stage. There are 10,000,000 authorized shares. How many shares this founder will get in case if the founders decided to allocate only 8,000,000 for founders and the rest for stock plan 10% and future investor 10%?
Outstanding shares are what constitute ownership, not authorized shares. It's unclear in your example what you mean by allocated. If you mean that all 10m authorized shares have been issued, with 8m given to founders and 2m sitting on the company's balance sheet in order to give to staff and future investors, then 10m represents the total ownership and you have to give this founder 1m shares in order for her to have 10% of the company.
But, if you mean that the company has only issued 8m shares so far out of the total 10m it is authorized to issue eventually, then that is the total ownership and 10% is 800k shares.
Hope this helps.
Answered 3 years ago
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