What is an Issue New Shares?
A Directors’ Resolution to Issue New Shares is a resolution to be passed by the directors of a company to approve the allotment and issue of new shares.
How to create an Issue New Shares
Easy to Use Legal Templates
Quickly and easily create any legal agreement for you or your team.
Straightforward pricing plans and bespoke packages built to simplify all your legal demands.
Vast Document Library
Zegal’s comprehensive collection of agreements means you always have what you need at your fingertips.
What is a Directors’ Resolution to Issue New Shares?
A Directors’ Resolution to Issue New Shares is a resolution to be passed by the directors of a company to approve the allotment and issue of new shares. After using this Directors’ Resolution, remember to:
- file the relevant form to update the relevant government department or registry within the statutory time limit;
- issue and deliver new Share Certificates; and
- update the register of members of the company.
Can a board of directors issue new shares?
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.
How to implement the Directors’ Resolution to Issue New Shares?
There are two options when using a Directors’ Resolution to Issue Shares:
- if a meeting of the board of directors is convened to issue shares, use a Board Minutes to Issue Shares; or
- if the board resolution will be passed by way of a written resolution, use a Board Resolution to Issue Shares.
What is the difference between the issue and the allotment of shares?
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.
What is an Initial Public Offering (IPO)?
An IPO is the process of offering shares of a private company to the general public. It helps companies to raise capital from public investors. Any company that wants to get listed on an exchange can issue an IPO and those shares are traded in the open market. Many investors buy those shares in large quantities and sell them through secondary market trading.
Every business that offers or issues shares needs a Directors’ Resolution to Issue New Shares template. It deals with the overall issuing of shares and allotting them. It can be used both for ordinary shares issuance or preference share issuance.
You Might Also Like
Along with this document, make sure you see these other templates in our library:
The Zegal Template Library
Zegal's template library is a list of essential and premium business templates for your everyday legal needs.
Save money and time without sacrificing quality or missing vital legal requirements. Whether you're a startup or a larger enterprise, Zegal lets anyone create a legal agreement.
Let us take care of the legals so you can focus on running your business.
If you need more help, our "Talk to a Lawyer" feature gives you access to a qualified lawyer to get all the expert advice you need.
Try it for free today!
Ready to get started?
Create a free account now and explore all of the Zegal features.
No credit card required
If you're creating an Issue New Shares, you may also be interested in the following documents:
Choose from 1000+ legal templates and draft contracts with ease and confidence.
Contract and document management made easy.
Pay As You Go
Nice things people say about Zegal.
"Using Zegal allows us to take a lean and efficient approach that cuts costs while maximising results."
"Zegal is easy to use and customer service is responsive and helpful! I strongly recommend it!!"
"Zegal makes onboarding a new client or employee fast and simple."
“Zegal really works well for all our legal documentation needs, and it is also user-friendly and mobile at the same time.”
Daniel W. Ho
Managing Director & Principal Consultant
“Zegal is like my teammate, helps me draft the right template, quickly gets my work done, and also saves me money on legal needs.”
CEO & Co-Founder
“With colleagues, partners, and clients across the globe, Zegal provides an easy-to-use tool that streamlines processes that saves costs and time.”
CEO of Turnkey
“Zegal has been such a great help in my business operations.”
Amanda A Atan
Managing Director at VIBES Mastery
“With Zegal, we work smarter rather than harder. Being a business professional, a proper document management system is always a must.”
“Zegal, a platform for compact package of legal templates, secured e-signing, reasonable cost and high level customer service.”
“Zegal is easy to use, affordable and the platform is simple to navigate which makes the process of putting together a document fast and fuss-free.”
Founder & Managing Director
“Love the new flow/design, very quick and easy to use now. I have done 2 or 3 customer contracts in a flash over the past 2 days.”
General Manager and Managing Editor
“Consistently positive experiences with Zegal’s technology, and customer services teams, who ensure that our issues or questions are responded to immediately.”
CEO of Turnkey