Week 13 - Allotment v Issue of Shares CA 2006

Question 1

S.558 - When are shares alloted?

Answer 1

Shares are allotted when the company agrees to issue the shares to that investor (contractual right to have the shares allocated to them)

Question 2

Define allotment

Answer 2

Usually what we call the right to have shares allotted to you - the actual process of issuing those shares by the company

Question 3

Directors are generally not allowed to a lot shares without…

Answer 3

Without authority to do so from any existing shareholder members

Question 4

Directors of public and private companies, if they have more than once class of shares, cannot…

Answer 4

Cannot issue further shares without express authority of all the different shareholders

Question 5

S.113 - Shares are not said to be issued until…

Answer 5

Shares are not said to be issued until the investor’s name is registered in the company’s register of shares

Question 6

Pre-emption rights

Answer 6

Shareholder has right of first refusal over the issue of new shares