Commentary

134 Resolution giving directors power to allot for period of five years

COMPANIES vol 10(1) Directors and Other Officers, Shareholders, Shares and Share Capital
| Commentary

134 Resolution giving directors power to allot for period of five years

| Commentary

134 Resolution giving directors power to allot for period of five years

Any authorisation to allot shares is required to be limited to five years1. This could cause problems in practice; for instance, a company might forget to renew its directors’ authorisation through an oversight and find itself unable to allow shares when it wanted to. If a company decides to use a standard item in its agenda to give the directors authority to allot for another five years, the expiry date of the authority should be clearly stated in the resolution2. Where this approach is

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