Do directors need shareholder approval to issue new shares?

Directors of a company are required under the Companies Act 2006 to have shareholder authority to allot new shares. An exception to the requirement to have authority is in the case of a private limited company with only one class of share provided that there is no prohibition on the allotment of new shares in the company’s Articles of Association. Where a company has more than one class of share, the directors will need shareholder authority to allot new shares unless there is an existing authority in place to allot shares either in the company’s Articles of Association or by a pre-existing ordinary resolution of shareholders which remains in force.

When do pre-emption rights apply on the issue of new shares?

In addition to the authority to allot new shares, an allotment of new shares may also be subject to pre-emption rights in favour of existing shareholders. Pre-emption rights give existing shareholders first refusal on an issue of new shares – the new shares must be offered to existing shareholders before they can be taken up by new investors or shareholders. Under the Companies Act 2006, pre-emption rights will apply on the issue of new shares by a private limited company unless: the pre-emption rights have been disapplied either in the company’s Articles of Association or by a special resolution of shareholders, or the issue of new shares is under an employee share scheme, wholly or partly for non-cash consideration or a bonus issue

When do I use this document? for the assignment of IPR by a third party contractor to a company as part of the closing documents in an investment transaction What are the key features? 8 clauses over 4 pages in the form of a deed between the company and the assigning contractor definitions of Developed IPR and Intellectual Property assignment and further assurance provisions warranties from the assigning contractor as to ownership of the Assigned IPR What other documents are available? For a Deed of Assignment of general intellectual property rights by a founder to a company, see Intellectual Property Deed of Assignment For a Deed of Assignment of registered and unregistered trade marks, see Trade Mark Assignment

Shareholder resolutions: authority to allot shares and disapply pre-emption rights

Name: Shareholders Resolution Template - Paper Rock Docs
SKU: RES002.001
Price: 35.00 GBP
Availability: InStock

Shareholder resolutions to grant directors authority to allot new shares and to disapply shareholder pre-emption rights on the allotment of new shares.

to grant general authority to the directors to allot new shares up to a maximum specified amount of share capital
to disapply statutory pre-emption rights under the Companies Act 2006 for shares allotted pursuant to that general authority

What are the key features?

shareholder written resolutions – one ordinary resolution and one special resolution
ordinary resolution to grant general authority to directors to allot shares:
- up to a specified aggregate nominal amount of capital
- for a limited period (maximum permitted 5 years)
special resolution to disapply statutory pre-emption rights on the issue of new shares in relation to shares issued pursuant to the general authority

What else do I need to know?

For more information about the directors’ authority to allot shares and shareholder pre-emption rights, see, Issue of new shares

Description

When do I use this document?

for the assignment of IPR by a third party contractor to a company
as part of the closing documents in an investment transaction

What are the key features?

8 clauses over 4 pages
in the form of a deed between the company and the assigning contractor
definitions of Developed IPR and Intellectual Property
assignment and further assurance provisions
warranties from the assigning contractor as to ownership of the Assigned IPR

What other documents are available?

For a Deed of Assignment of general intellectual property rights by a founder to a company, see

Intellectual Property Deed of Assignment

For a Deed of Assignment of registered and unregistered trade marks, see

Trade Mark Assignment

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

£35.00 exc VAT

Updated by a lawyer on 21/08/2024

Updated By a lawyer on 11/15/2022

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Shareholder resolutions: authority to allot shares and disapply pre-emption rights

When do I use this document?

What are the key features?

What else do I need to know?

When do I use this document?

What are the key features?

What other documents are available?

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Shareholder decision making in private companies – what you need to know

Create your document in 3 Easy Steps

PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

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“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”

Giles, MD | Boniti Ltd.

Shareholder resolutions: authority to allot shares and disapply pre-emption rights

When do I use this document?

What are the key features?

What else do I need to know?

When do I use this document?

What are the key features?

What other documents are available?

Explanatory Guides

As with all of our document templates, your purchase will include access to clear explanatory guidance on the document and its use.

Related Articles

Shareholder decision making in private companies – what you need to know

Create your document in 3 Easy Steps

PaperRock offers affordable, legal document templates, written by experienced and expert lawyers, trusted by businesses across the UK and beyond. No hidden charges or trial sign-ups are required to complete your document.

“I have worked in legal and business affairs for over 25 years and need access to a wide range of corporate and commercial legal precedents. Paperrock is a refreshing source of high-quality legal templates. Superb value for money.”

Amanda | Bannister Creative

“It’s hard to find legal documents on the internet you can really trust. Knowing an expert lawyer has drafted what I need, gives my business the edge and gives me peace of mind.”

Elle, Founder | Winslow skincare & aesthetics.

“As an SME Paperrock saves us the legal fees we’ve previously had to spend. In these challenging times that's a big help. Great products and support.”

Giles, MD | Boniti Ltd.

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