The following Corporate practice note provides comprehensive and up to date legal information covering:
With some exceptions, the directors of a company must not exercise any power of the company to allot shares in the company or to grant rights to subscribe for, or convert any security into, shares in the company except in accordance with the appropriate statutory provisions for:
private companies with a single class of shares, or
private companies with more than one class of shares or public companies (listed and unlisted)
For further information on allotments generally and allotments by different types of company, see Practice Notes: Allotment and issue of shares—introductory points, 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.
This Practice Note covers the penalties for breach of the allotment provisions in the Companies Act 2006 (CA 2006). It does not consider any other legislation or guidelines (as applicable).
For information in relation to penalties for breach of pre-emption rights, see Practice Note: Pre-emption rights—penalties.
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