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New Share Allotments

Home New Share Allotments

investing in zimbabweThe VCS share allotment service will provide all the documentation and forms for the issue of new shares in a company. If the shares are to be of a class that has not yet been created, that will have to be done first.

The procedure on share allotments is more complex than many people understand but generally the following issues must be considered

Authorised capital: Every registered company has an authorised capital figure in its memorandum of association. This is the upper limit to the number of shares the company can issue without increasing its authorised share capital.

Shareholders' consent: It may be necessary for the existing shareholders to consent to the allotment, either under a provision in the company's articles or by virtue of a provision of the Companies Act. This can be a complex area and often it is simpler to include such consent in the procedure rather than spend time checking whether one is actually needed.

Pre-emptive rights: The existing shareholders must be offered any new shares being issued in proportion to their existing shareholdings. Such rights may exist under the Companies Act, the company's articles or a shareholders' agreement. If the shares are not being issued on that basis, the pre-emptive rights can usually be excluded by passing a special resolution, or the shareholders can decline the shares they would be entitled to. In either case, the correct procedure must be used.

While this may seem quite onerous, we at VCS, through years of experience, are experts in following the necessary procedures and facilitating the allotment of new shares in companies. Our service includes the following:

  • guidance as to the applicable procedures
  • preparation of shareholders' resolutions
  • preparation of forms for the Registrar of Companies
  • updating the share register
  • issuance of new share certificates

Take the next step with Virtual Corporate Services today.
Contact us on info@vcsafrica.com
and one of our consultants will be in touch with you to discuss how VCS can work with you to realise your goals of incorporation and business.

free 30 Minute consultation

Virtual Corporate Services provides complete company registration and company secretarial solutions for both domestic and offshore structures. Your complimentary 30 minute consultation is waiting, just contact us at info@vcsafrica.com and you will get to talk with an experienced professional today. You will get the answers you need to make the right decisions for your business.
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