SHARE ALLOTMENT - Register of Members
+852 2153 6555 Call Us Now
SHARE ALLOTMENT - Register of Members
There are two ways by which a limited company can add a new shareholders. Allotment of shares from the company and transfer of shares from an exisiting member.
The allotment of shares is the procedure for a limited company to issue new shares to the exisitng shareholders or to the thrid party investors.
A company may invite its existing shareholders to subscribe for the further shares in order to raising capital. If the allotment of shares are made to all existing shareholders in pro rata to their existing share holdings, the company's board of directors has the power to approve the allotment without granting the approval of the general meeting.
Except from a rights issue offerred by the company to all existing members, the directors of a company must first obtained the approval from the shareholders of the company in a general meeting before exercising the power of allotment of shares. The approval may specify that the offer, agreement, or option to allot shares will be made within the approval time.
The allottee becomes a member of the company when his name is entered on the register of members. The company should issue a new share certificate to the new member within two months after the allotment of shares.
If you need further advise about how to issue new shares, talk to our company formation consultant to get a free consultation, or to arrange a meeting, please call us at +852 2153 6500 or email us at [email protected].
We also provide a wide range of business supports, including virtual office services, call answering, mail forwarding, working visa application and trademark registration, to assist you in managing a Hong Kong business at a minimal cost.