Issuing Shares

Question 1

Authority
Who needs for what?
How can they get it?
What does there need to be stated?(2)

Answer 1

Director to allot shares
From articles of passing ordinary resolution
Number to be allotted and expiry date of authority

Question 2

Discounted
When should they never be discounted?
What happens if they are?
When can debentures be discounted?

Answer 2

At nominal value CA06 s580
Allottee must pay the discount and interest
When they do not have immediate right to convert to shares

Question 3

Premium
What must premiums be?
What can this only be used for? (3)

Answer 3

Credited to share premium account under CA06 S610
Write off expenses of the issue
Write of commission paid
Issue bonus shares

Question 4

Paying for shares public company 
Who must pay what for what?
What can they not offer?
When can shared be issued?
When must non cash consideration be received and what must it have been?

Answer 4

Subrscribers must pay cash for subscription shares
Work or services
1/4 net value and premium paid
Within 5 years and independently valued