An issue of shares refers to the creation of new shares in a company. These shares are allocated (or ‘allotted’) to a person or persons, who may be an existing or new shareholder in the company. An issuance is made in exchange for payment by the new shareholder(s) and is normally paid in cash straight away.
The typical issue of shares process starts with the prospective shareholder(s) applying to the company for shares in it, together with the relevant payment. The directors will then recommend that the existing shareholders in the company waive their right to pre-emption (the right to ‘first refusal’) on the issuance by passing a special resolution.
Once this special resolution has passed, the issue of shares is approved by the directors, who then update the company’s records, deliver the share certificates to the new shareholders, and submit the details of the allotment to Companies House.
A professional company secretary
to take care of your business.
All government mail scanned
and emailed to you free of charge.
“The Rapid Formations system is so clear - it came as no surprise when all of my incorporation documents arrived in my inbox two hours later.”
Rapid Formations Customer
Included with your package is a bank account from one of our partners.