Last updated on September 2nd, 2020 at 11:34 am
There are several reasons why a company may want to issue shares, for example new shares may be issued in exchange for investment into the company as a way of injecting capital. However, there are certain formalities that must be complied with before any new shares are issued. These include obtaining the approval of the issuing company’s board of directors who will ultimately issue the shares, and a company’s articles often include rights of pre-emption (where existing shareholders have a right of first refusal over new shares) that require shareholder approval in order to disapply.
When you purchase this product you will receive a set of two template documents, a set of standard form board minutes to record the issue of shares and any relevant board resolutions as well as a set of standard shareholder resolutions to grant directors authority to issue the shares and to disapply any rights of pre-emption.
The template documents are fully adaptable and you will receive separate guidance notes explaining the purpose of these documents and how to identify which resolutions will be required.
Further details about the process for issuing new shares can be found here.