Allotment Definition

GLOSSARY

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What does Allotment mean?

shares in a company are taken to be allotted when a person acquires the unconditional right to be included in the company’s register of members in respect of the shares (Companies Act 2006, s 558). Allotment is followed by the issue of the shares.

View the related checklists about Allotment

Allotment of shares and disapplication of pre-emption rights—listed company—checklist

Allotment of shares and disapplication of pre-emption rights—listed company—checklist STOP PRESS: A significant restructuring of the UK listing regime came into effect on 29 July 2024, which included the removal of the premium and standard listing segments and the creation of a single listing category for equity shares in commercial companies. The commercial companies category is heavily disclosure-based and sits alongside other listing categories such as the shell companies, secondary listing and closed ended investment fund categories. A new UK Listing Rules sourcebook came into force to implement the changes and the previous Listing Rules sourcebook was revoked. For further information see Practice Note: Reform of the UK listing regime—fundamentals. This Checklist reflects the listing regime as it was prior to 29 July 2024. 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 checklist sets out...

Tailoring a shelf company limited by shares—checklist

Tailoring a shelf company limited by shares—checklist STOP PRESS: The Economic Crime and Corporate Transparency Act 2023 (ECCTA 2023) received Royal Assent on 26 October 2023. It is intended to enhance corporate transparency in the UK, principally through Companies House reforms and amendments to provisions of the Companies Act 2006. It also seeks to modernise the regulatory framework for limited partnerships and create stronger powers to tackle economic crime. ECCTA 2023 is to come into force in stages. A number of its provisions came into force on 4 March 2024 and may impact this content. For further information, see Practice Notes: Implementation of the Economic Crime and Corporate Transparency Act 2023 and The Economic Crime and Corporate Transparency Act 2023, particularly the legislation and consultation tracker. A person wishing to set up a new company has the following options: • they can incorporate a new company in accordance with the Companies Act 2006 (CA 2006), which is tailored to meet its specific requirements upon incorporation (a tailor-made company), or • they can...

Subscription agreement—first time issuer's guide

Subscription agreement—first time issuer's guide The aim of this Practice Note is to provide information and practical guidance on English law subscription agreements to lawyers advising first time issuers of debt securities. This Practice Note focuses on first time issuers because debt capital markets documentation for subsequent issues tends to follow very closely the documentation which the issuer used for its first issue—the documentation stage of the first issue is therefore the time when an issuer and its advisers have an opportunity to consider the documentation in depth and (within the constraints imposed by accepted debt capital markets practice) to influence the form of the documentation. This Practice Note assumes that first time issuers are not likely to be the major corporates, financial institutions, multilateral agencies (like the World Bank) or sovereigns which traditionally raise funds in the international investment-grade public debt capital markets, but rather issuers which may be active in particular sectors of the debt capital markets when market conditions are favourable or funding from other...

Pakistan FDI control

Pakistan FDI control A conversation with Mr. Sarjeel Mowahid, Partner, Ms. Humail Atiq, Associate of ABS & CO on key issues on FDI control in Pakistan. 1. What is the applicable legislation? Pakistan is a federation whereby certain subjects are devolved to the competence of the provinces, while others are retained under the legislative competence of the federal government. As of passing of the 18th Amendment of the Constitution of 1973, there is a federal legislative list which covers the subjects on which the federal government is competent to legislate, while other subjects shall be legislated upon by the provinces. It may be noted that the scope of the article is limited to the overall investment regime applicable to foreign investors, with a primary focus on federal legislation. Sectoral and provincial laws may be applicable in addition to the laws mentioned below, and it is pivotal that professional advice is sought with regards to the nature of the investment being made. Regardless, the main laws are as follows: •...

Discover our 237 Practice Notes on Allotment

Board minutes—private limited company—first meeting

Board minutes—private limited company—first meeting company number: [insert number] [INSERT COMPANY NAME] LIMITED Minutes of a meeting of the board of directors (the Meeting) of [insert full name of company] (the Company) Held at [insert place of meeting] On [insert day, month and year of meeting] at [insert time of meeting][am OR pm] Present: [Insert names of the director(s) physically present][[Insert names of any directors present by telephone as permitted by the Company’s articles of association] (by telephone)] [[Insert names of any directors present by other means permitted by the Company’s articles of association] by [insert other means]] [ In attendance:] [[Insert name of anyone in attendance, who does not count towards the quorum for the Meeting (eg the company secretary, any advisers)]] 1 Chair, notice and quorum [Insert name] was appointed Chair of the Meeting. The Chair reported that proper notice of the Meeting had been given in accordance with the Company’s articles of association (the Articles) and that a quorum was present. Accordingly,...

Joint venture shareholders’ agreement—deadlock (50:50)

Joint venture shareholders’ agreement—deadlock (50:50) This Agreement is made on [insert date] 20[insert year] Parties 1 [Insert name of first shareholder] incorporated in England and Wales under number [insert company number] whose registered office is at [insert address] ([A]), 2 [Insert name of second shareholder] incorporated in England and Wales under number [insert company number] whose registered office is at [insert address] ([B]), and 3 [Insert name of the company in which the shares are held] incorporated in England and Wales under number [insert company number] whose registered office is at [insert address] (the Company). BACKGROUND (A) The Company, at the date of this Agreement, has in issue ordinary shares of £[insert nominal value] each, of which one ordinary share has been issued fully paid and is registered in the name of [A] and one ordinary share has been issued fully paid and is registered in the name of [B]. (B) The Company shall carry on business in accordance with the terms and conditions of this Agreement....

Dive into our 158 Precedents related to Allotment

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...

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?

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 issue of shares—private companies with more than one class of share and public unlisted companies may be useful. Both Practice Notes discuss the procedure for...

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A shareholder’s personal standing to challenge dilution of shareholding (Tianrui IHC v China Shanshui Cement Group Ltd (Cayman Islands))

Dispute Resolution analysis: The Privy Council was asked to consider whether the appellant, Tianrui IHC Ltd a minority shareholder (Tianrui) enjoyed personal standing to claim against a company when the directors of the company allot shares for an improper purpose. The Privy Council was particularly concerned with the question of whether Tianrui enjoyed a private right to sue the company for a declaration that the power of the company had been invalidly exercised by the board of directors on the company’s behalf? A natural subsidiary question was whether the possibility of ratification by a general meeting was sufficient to cure the irregular exercise of power by the board. Written by Lauren Godfrey, Barrister at Gatehouse Chambers.

Tax weekly highlights—7 November 2024

This week's edition of Tax weekly highlights includes: (1) the publication of Finance Bill 2024–25, (2) a reminder of our full Autumn Budget 2024 coverage and related news, (3) case analysis of the FTT’s decision in Collins Construction Ltd concerning the restriction on subsidised expenditure under the pre-April 2024 R&D tax relief rules for SMEs, and (4) analysis of the FTT’s decision in Murphy concerning an SDLT sub-sale avoidance scheme.

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