There may be times when you want to change the share structure of your company; either by adding a new shareholder or by changing the existing proportion of shares between shareholders. When there are insufficient shares to allow for a transfer or it’s not ideal to distribute existing shares, new shares can be allotted (issued).

Share allotment is the creation and issuing of new shares, by a company. New shares can be issued to either new or existing shareholders. Share allotment can have implications for any existing shareholders share proportion. Typically, new shares are allotted to bring on new business partners.

Before you take any action on changing your share structure within your company, contact your Account Manager so we can understand and advise on your plans.