Issuing new shares in a company is an important step, so you want to make sure you get it right. Use our checklist to make sure you have all the preparatory steps covered.
A company may wish to issue new shares for a variety of reasons. For example, they may be issued to directors or employees to give them a stake in the company’s growth, or to investors in return for their investments. New shares are created by the shareholders, who grant the power to issue and allot them to the directors. Before new shares are issued, a company needs to check what restrictions may apply.
The company needs to check its Articles and previous resolutions to resolve five key points:
If the shareholders have needed to pass the special or ordinary resolutions discussed in the checklist, they must be filed at Companies House within 15 days.