Share Allotments - Company Formation - UK Registration Services

When a company allots shares it must send a form 88(2) to Companies House. This form details both the shares which have been allotted and the portion if any which has been paid for. If payment for the shares is in a form other than cash, a description of the item(s) given should also be noted.

A common form of share allotment are those shares given to a director or employee at nil cost. There are certain accounting entries related to bonus shares which the company must then make. The primary account affected the the capital redemption reserve where an amount equal to the shares issued is transferred from the retained profit and loss account to this reserve.

To ensure that holdings which exist for current shareholders can not be diluted without their consent, it is normal for most companies to have preemption rights clauses in their memorandum and articles of association. These clauses effectively stipulate that a company must offer any proposed share allotments to the existing shareholders before offering them to third parties. The shares offered to a particular person would normally be the percentage of the proposed allocation which is equal to their current percentage of shares held.

1. Forming A Company Just Became Easier

2. Statutory Requirements For New Companies

• Issue and Allotment of Shares
• Transfer of Shares
• Dividends
• Company Meetings
• Company Notices
• Directors Meetings
• Single Member Companies

3. Non Profit Organisations

• Options for incorporated not-for-profit organisations
• Companies House Coding System
• Non s30 companies
• Royal Charter
• Charitable Companies

4. Company Directors and Secretaries

• An introduction to limited companies
• Role and duties of a company director
• Role and duties of a company secretary
• What you have to send to Companies House
• Quality of company documents
• Further information

5. Annual Returns

• Completing an annual return
• Completing the shuttle annual return Form 363s

6. Accounts and Accounting Reference Dates

• Accounting reference dates
• Submitting accounts to Companies House
• What if the accounts are delivered late?
• Small and medium sized companies accounts submission
• Very small company audit exemptions
• Audit exemptions and accounts to shareholders
• Exemption from audits for dormant companies
• What happens if my company starts trading again?
• Partnership accounts

7. Company Auditors

• Appointment of auditors
• Dormant company audit exemption
• What and who are recognised supervisory bodies?
• Removal of auditors

8. Share Capital and Prospectuses

• Share capital
• What is issued capital?
• Non-cash payments?
• Are there different types of shares?
• Can class rights be amended?
• Redemption and purchase of own shares?
• Prospectuses and listing particulars

9. Late Filing Penalties

• Late filing penalties
• Late filing penalties need not be necessary
• Once a late filing penalty has been imposed
• Further information

10. The Costs and Benefits of Company Registration

• Company Formation Introduction
• Costs and benefits of limited liability
• Restrictions and costs of setting up a company I
• Restrictions and costs of setting up a company II
• Restrictions and costs of setting up a company III
• Restrictions and costs of setting up a company IV
• The registration of company names
• The company’s constitution and the ultra vires rule
• Summary and conclusions