Q&As

What date should be entered into the PSC register following an allotment of shares to an individual? Should it be the date of allotment, or, if different, the date when the shares are actually issued (when the details of the individual are entered into the register of members)?

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Published on LexisPSL on 10/05/2018

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

  • What date should be entered into the PSC register following an allotment of shares to an individual? Should it be the date of allotment, or, if different, the date when the shares are actually issued (when the details of the individual are entered into the register of members)?

What date should be entered into the PSC register following an allotment of shares to an individual? Should it be the date of allotment, or, if different, the date when the shares are actually issued (when the details of the individual are entered into the register of members)?

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.

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 of the person to whom the shares have been allotted is entered on the register of members of the company in respect of them. Allotment creates a right for a person to be registered as a member of a company, but only once a share has been issued can that person exercise his rights as a member.

Unfortunately, the non-statutory Guidance in relation to the significant ownership or control conditions under Schedule 1A of the Companies Act 2006 (CA 2006) does not provide specific information on these

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