133 Authorisation

Under the Companies Act 2006, the factors to be considered when contemplating a share issue are the directors’ authority to allot and the question of pre-emption rights. Directors of any company (public or private) proposing to allot shares are required, under certain circumstances, to have the authority of the members to do so1. This requirement does not apply to a private company which has only one class of shares2. In practice, many private companies have more than one class of shares(they may wish to issue preference shares for example), and so their directors will

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