How to issue (allot) new shares

Allotting shares is how a company creates and issues new shares — typically to raise money or bring in a new shareholder. (This is different from a transfer, where existing shares change hands.)

The steps

• Check authority. Confirm the directors have authority to allot (in the articles or by ordinary resolution) and consider any pre-emption rights that give existing shareholders first refusal.
• Pass the resolution. The board resolves to allot the shares, usually recorded in board minutes.
• Update the register of members. Enter the new holding — this is what legally confers ownership.
• Issue a share certificate to the new holder within two months.
• File form SH01 (return of allotment) at Companies House within one month, with a statement of capital.

In Compaxit, allotting shares updates the register, records the transaction and issues the certificate automatically, and prepares the SH01.