Allotment of Shares

What is an Allotment of Shares?

An allotment of shares is the process by which a company issues new shares to existing shareholders or new investors. This increases the total number of shares in the company and can be used to raise capital, bring in new business partners, or restructure ownership.

When Would You Allot Shares?

• Raising additional capital for the business
• Bringing in a new shareholder or investor
• Issuing shares to employees as part of a share incentive scheme
• Restructuring the ownership of the company

The Process

The allotment of shares involves several steps to ensure full compliance with the Companies Act 2014:

• Board resolution authorising the allotment
• Shareholder approval if required by the company's constitution
• Filing of Form B5 (Return of Allotments) with the CRO within 30 days
• Updating the company's share register and issuing new share certificates

Important Information

The directors must have the authority to allot shares, either through the company's constitution or by ordinary resolution. Pre-emption rights may apply, giving existing shareholders the right to purchase new shares before they are offered to others. We will advise you on all requirements specific to your company.