How to verify allotment and issuance of shares
- By : Wong Mei Ying
- Category : Company Law, Linkedin Post, Mergers and Acquisitions
Investors who want to invest in a company in Malaysia would want to know that the issuance and allotment of the shares in a company since incorporation have been duly authorised and lodged with the Registrar.
What do you need to check to verify that?
The documents you need to check include:
1. Shareholders’ resolution to approve allotment of shares (sections 75 and 76 of the Companies Act 2016).
2. Directors’ resolution to exercise power to allot shares in the company.
3. Notice of shareholders’ approval for allotment of shares which should be lodged with the Registrar within 14 days from the date of the shareholders’ approval (section 76 of the Companies Act 2016).
4. Return of allotment which should be lodged by the company with the Registrar within 14 days from the date of allotment (section 78 of the Companies Act 2016).
5. Notification to the Registrar of the changes in the particulars of the register of members of the company within 14 days of the changes (section 51 of the Companies Act 2016).
6. Register of members which should be updated to register the allotment of shares within 14 days from the date of the allotment (section 77(1) of the Companies Act 2016).
This post was posted on Linkedin on 31 January 2022.
