The following Corporate guidance note provides comprehensive and up to date legal information covering:
The allotment of shares and issue of shares is governed by statute and the applicable statutory provisions differ according to the type of company that is proposing the allotment and whether that company has a single class of shares or multiple classes.
For specific information on allotments by different types of companies, see Practice Notes: Allotment and issue of shares—private companies with one class of shares, Allotment and issue of shares—private companies with more than one class of share and public unlisted companies and Allotment and issue of shares—listed companies.
The additional rules, regulations and guidance relating to the allotment of shares that are applicable to a listed company, an AIM company or a company with securities that are listed on the NEX Exchange Main Board, NEX Exchange Growth Market or NEX Exchange Secondary Market (previously known as PLUS-listed, PLUS-quoted and PLUS-traded) are outside the scope of this Practice Note.
The terms 'allotment' and 'issue' are often used interchangeably in relation to new shares in the capital of a company, however, the terms do have distinct legal meanings that it is important to understand.
Shares in a company are allotted when a person acquires the unconditional right to be included in the register of members in respect of those shares.
The subsequent issue of those shares is when the name
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.