{"id":56390,"date":"2021-06-16T13:41:01","date_gmt":"2021-06-16T05:41:01","guid":{"rendered":"https:\/\/zegal.com\/issue-new-shares-in-your-company\/"},"modified":"2024-12-27T17:40:34","modified_gmt":"2024-12-27T09:40:34","slug":"issue-new-shares-in-your-company","status":"publish","type":"page","link":"https:\/\/zegal.com\/en-sg\/use-case\/issue-new-shares-in-your-company\/","title":{"rendered":"Issue new shares in your company"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/zegal.com\/en-sg\/use-case\/issue-new-shares-in-your-company\/#How_does_a_company_issue_new_shares\" >How does a company issue new shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/zegal.com\/en-sg\/use-case\/issue-new-shares-in-your-company\/#Can_a_board_of_directors_issue_new_shares\" >Can a board of directors issue new shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/zegal.com\/en-sg\/use-case\/issue-new-shares-in-your-company\/#What_is_the_difference_between_the_issue_and_the_allotment_of_shares\" >What is the difference between the issue and the allotment of shares?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/zegal.com\/en-sg\/use-case\/issue-new-shares-in-your-company\/#What_is_a_share_certificate_and_its_importance\" >What is a share certificate and its importance?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"How_does_a_company_issue_new_shares\"><\/span>How does a company issue new shares?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>New shareholders can be introduced to a company in two main ways:<\/p>\n<ol>\n<li><strong>by issuing new shares<\/strong><\/li>\n<\/ol>\n<p>Companies may want to issue new shares for many reasons, such as raising capital.&nbsp; This can be done by bringing in outside investors or by increasing the number of shares to existing shareholders. Capital could be required to fund an expansion of the company or to pay debts. Another reason to issue new shares may be to introduce a bonus \u201coption\u201d scheme for employees or to gift shares to family members.<\/p>\n<ol start=\"2\">\n<li><strong>by transferring shares<\/strong><\/li>\n<\/ol>\n<p>Shareholders have the ability to transfer their shares to existing shareholders or third parties by way of a sale of the shares or a gift, though this must be done in accordance with the company\u2019s Constitution and any Shareholders\u2019 Agreement.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Can_a_board_of_directors_issue_new_shares\"><\/span>Can a board of directors issue new shares?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>There are statutory restrictions on the circumstances under which the board of directors can authorize allotment and issue of shares, e.g., when the shareholders have already approved the issue, or when the issue is proportional to the existing shareholding of the company. In other circumstances (for example, if the company has a new incoming shareholder which changes the shareholding proportion of the existing shareholders), allotment and issue of shares must be approved by shareholders.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_difference_between_the_issue_and_the_allotment_of_shares\"><\/span>What is the difference between the issue and the allotment of shares?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Issue of share is basically a process in which companies issue shares to shareholders (these shareholders might be individuals or corporates) whereas Allotment of shares is the division of shares between those who have applied for those shares. For instance, if a company issues 1,000 shares and 100 people have applied for it, then each applicant is allotted a minimum of 10 shares.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"What_is_a_share_certificate_and_its_importance\"><\/span>What is a share certificate and its importance?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>A&nbsp;<strong>Share Certificate<\/strong>, commonly known as a stock certificate is a written document that evidences the buyer\u2019s title for holding the respective company shares.<\/p>\n<p>A Share Certificate acts as legal proof of shareholding in a particular company. When an individual or a business bought some shares in a company, they will be provided with a receipt of that purchase commonly known as a Share Certificate. Having it in place will give you a strong legal footing and also helps to settle down the dispute in the case it arises in the future.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How does a company issue new shares? New shareholders can be introduced to a company in two main ways: by issuing new shares Companies may want to issue new shares for many reasons, such as raising capital.&nbsp; This can be done by bringing in outside investors or by increasing the number of shares to existing [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":0,"parent":55265,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":[14138],"meta":{"_acf_changed":false,"_editorskit_title_hidden":false,"_editorskit_reading_time":1,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","inline_featured_image":false,"footnotes":""},"usecases":[],"class_list":["post-56390","page","type-page","status-publish","hentry","template-company-shares"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.8 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Issue new shares in your company | Zegal Singapore<\/title>\n<meta name=\"description\" content=\"How does a company issue new shares? 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