What does the allotment of shares mean?

Written by Dr. Adv. Leigh Hefer & Jayne Hunter-Rhys. COMPANY SECRETARY’S HANDBOOK (2021). Published by Genesis Corporate Services.

  1. Allotment is the process in which people become members of a company.
  2. Once the subscribers agree to take shares on incorporation, these shares are regarded as allotted.
  3. Later, more people may become members of the company and be allotted shares.
  4. However, the directors, must not allot shares without the authority of the existing shareholders subject to the company’s MOI.
  5. This authority is either stated in the company’s MOI or authority is given by the resolution passed by the shareholders of the company at a general meeting of the company.

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