Commentary

7.2 Share capital, dealing with directors

COMPANIES vol 11 acquisitions, mergers, demergers
| Commentary

7.2 Share capital, dealing with directors

| Commentary

7.2 Share capital, dealing with directors

The rules as to issue and maintenance of share capital are stricter in relation to public companies, namely:

  1. 7.2.1

        in a private company, the board of directors do not require any authority from the members to allot shares provided the company has only one class of shares (subject to any contrary provision in the company’s articles of association), whilst directors of a public company will need authority in these circumstances1;

  2. 7.2.2

        a private company is generally not prohibited from giving financial assistance for the acquisition of its own shares whilst this course of action

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