Allotment

Allotment in United Kingdom

Definition of Allotment

In accordance with the work A Dictionary of Law, this is a description of Allotment :

A method of acquiring previously unissued shares in a *limited company in exchange for a contribution of capital. An application for such shares will often be made after the issue of a *prospectus on the *flotation of a *public company or on the privatization of a state-owned industry. The company accepts the application by dispatching a letter of allotment to the applicant stating how many shares he has been allotted; he then has an unconditional right to be entered in the *register of members in respect of those shares. If he has been allotted fewer shares than he has applied for, he receives a cheque for the unallotted balance (an application must be accompanied by a cheque for the full value of the shares applied for).

See also authorized capital; retur

Company Share Capital: The raising of capital

The authority to allot shares

Find under this subsection information about The authority to allot shares in relation to Company Share Capital: The raising of capital.

Regulating the adequacy of the consideration obtained for shares on allotment


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