Share Allotement
Share allotment is the process where a company issues and assigns new shares to either existing or new shareholders. This can be done to raise capital, bring in new business partners or existing directors
What is Share Allotment?
Share allotment refers to the process by which a company issues new shares to shareholders or new investors. This usually occurs during company formation, capital expansion, or employee stock option plans. Allotting shares increases the company’s paid-up capital and changes the shareholding structure.
Allotment of shares must follow the rules set out in the Companies Act of Bangladesh and the Articles of Association of the company. It requires formal approval, documentation, and regulatory filing to be legally valid.
Why is Share Allotment Important?
Share allotment is crucial for raising capital and expanding business operations. It allows companies to onboard new investors, reward employees, and adjust ownership for strategic reasons. When done properly, it ensures transparency, legal protection, and compliance with the Registrar of Joint Stock Companies (RJSC).
What services does ‘MS Associates’ provide regarding Share Allotment?
- Preparation of Share Allotment Documentation: We draft allotment letters, shareholder resolutions, and necessary forms.
- Board Meeting Support: We assist in conducting board meetings for approval of share allotment.
- RJSC Filing: We submit necessary filings to RJSC to record the share allotment in official records.
- Capital Structure Update: We help update the shareholding structure and issue updated share certificates.
- Legal Compliance: Ensure compliance with the Companies Act and company charter.
- Consultation: We advise on appropriate share allotment ratios, valuations, and documentation procedures.
‘MS Associates’ is always there to give you legal help or advice. So, contact us