What is an allotment and Issuance of Shares?
As a requirement at the time of incorporation, every Hong Kong Limited Company (the “Company”) must issue and allot a minimum of 1 share to its founder / member. However, at any time, should a company’s existing member wish to increase its share capital, they may do so by allotment of shares.
What supporting documents are required for Allotment and Issuance of Shares of the Company?
- the Articles of Association;
- the Register of Members;
- the Significant Controllers Register (“SCR”);
- the latest Annual Return;
- the copy of passport and address proof of the new member(s);
- the number of share(s) to be issued and allotted;
- the amount of capital to be contributed.
What is the process/procedure in an Allotment and Issuance of Shares?
- review of documents;
- preparing the application for shares form;
- drafting of board resolution or written resolution;
- arranging signatures on drafted resolution and share allotment documents;
- filing of the prepared form to the Companies Registry;
- issuance of share certificate(s) to new shareholder(s);
- updating the Register of Member and SCR.
What is the timeline in Allotment and Issuance of Shares?
The whole process takes around 2-3 working days, provided that all documents are in order.
