Allotment of Shares

ALLOTMENT OF SHARES

The process of allotting shares in a company involves certain steps and the submission of specific documents.. Here are the general steps and documents involved in the allotment of shares:

1. Board Resolution: Hold a board meeting and pass a resolution to propose the allotment of shares. The resolution should specify the number of shares to be allotted, the consideration for the shares (such as cash, assets, or services), and the names of the allottees.
2. Shareholder Approval: Call for an Extraordinary General Meeting (EGM) and pass a special resolution to approve the allotment of shares. The resolution should be supported by the requisite majority of shareholders as per the company’s articles of association.
3. Allotment Letter: Prepare an allotment letter addressed to each allottee, specifying the number of shares allotted, the consideration received, the share certificate number(s), and any other relevant details. The allotment letter should be signed by an authorized signatory of the company.
4. Share Certificate: Issue share certificate(s) to the allottees, evidencing their ownership of the allotted shares. The share certificate should include details such as the company name, shareholder’s name, address, share certificate number, class of shares, and the number of shares allotted.
5. Share Transfer Form: Prepare and execute a share transfer form for each allotment, transferring the shares from the company’s name to the name of the allottee(s). The share transfer form should be signed by both the transferor (company) and the transferee (allottee).
6. Share Register and Register of Members: Update the share register and register of members to reflect the allotment of shares. The registers should record the details of the shareholders, including their names, addresses, share certificate numbers, and the number of shares held.
7. Filing and Compliance: File necessary forms and documents with the Registrar of Companies (RoC) or the relevant authority as per the requirements of the jurisdiction. Ensure compliance with any filing deadlines and payment of applicable fees.
8. Record Maintenance: Maintain proper records of the allotment process, including board resolutions, share transfer forms, allotment letters, share certificates, and other relevant documents. These records should be kept at the registered office of the company.

Please note that the above steps and documents are provided as a general guide. The specific requirements and procedures for the allotment of shares can vary