Q&As

Does a public company which allots shares as opposed to paying cash as consideration for a target private limited company's shares act in contravention of the Companies Act 2006, s 586?

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Published on LexisPSL on 20/02/2015

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • Does a public company which allots shares as opposed to paying cash as consideration for a target private limited company's shares act in contravention of the Companies Act 2006, s 586?
  • Allotting shares in a public company:
  • Companies Act 2006 (CA 2006):

Does a public company which allots shares as opposed to paying cash as consideration for a target private limited company's shares act in contravention of the Companies Act 2006, s 586?

Allotting shares in a public company:

In terms of an allotment of shares our Practice Note: Allotment and issue of shares—introductory points provides useful guidance on the issue, including relating to preliminary considerations, payment for shares allotted and post-allotment actions. The preliminary considerations will be relevant as the articles of association of the company may contain any general restrictions in relation to the allotment of shares, and also whether there are pre-emption rights that will apply to the proposed allotment.

Depending on whether the public company in question is a listed or unlisted public company, the following two Practice Notes: Allotment and issue of shares—listed public companies and Allotment and

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