Allotment and issue of shares—private companies with more than one class of share and public unlisted companies
Allotment and issue of shares—private companies with more than one class of share and public unlisted companies

The following Corporate practice note provides comprehensive and up to date legal information covering:

  • Allotment and issue of shares—private companies with more than one class of share and public unlisted companies
  • Preliminary considerations
  • Allotments by all companies other than private companies with one class of share alloting shares of the same class as that in existence
  • Maximum amount of shares
  • Expiry date
  • Allotments by public companies where the issue of the shares is not fully subscribed
  • Validity of the authority to allot
  • Payment methods
  • Valuation of non-cash consideration for shares
  • Documents to be filed with Companies House
  • More...

The allotment and issue of shares is governed by statutory rules, which differ according to the type of company which is proposing the allotment (private or public, listed or unlisted) and whether that company has a single or multiple classes of shares.

This Practice Note considers the allotment and issue of shares by a private company with a single class of shares that proposes to allot shares of a different class, a private company with more than one class of shares and a public unlisted company (being a company that is not a listed company, AIM company or a company with securities listed on the AQSE Main Market, AQSE Growth Market or AQSE Trading (formerly NEX Exchange Main Board, NEX Exchange Growth Market or NEX Exchange Secondary Market).

For general information, see Practice Note: Allotment and issue of shares—introductory points. For information on the allotment and issues of shares for other types of companies, see Practice Notes: Allotment and issue of shares—private companies with one class of shares and Allotment and issue of shares—listed companies.

Subject to certain exceptions, a director of a private company with only one class of shares in issue that proposes to allot shares of the different class as that in existence, a private company with more than one class of shares in issue or a public unlisted company must not exercise any

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