CR2 is a document used for creating and issuing of new shares, share allotment in a private company means to increase the share capital by issuing new shares after incorporation, Issuing new shares is for many limited companies and it can be for a number of different reasons, such as: raising additional capital from investors, repaying debts, funding a new project, and awarding a bonus share to employees in place of a cash bonus.
FEATURES OF CR2 SHARE ALLOTMENT FORM
- The registered name and number of the company.
- The allotment dates.
- Details of the shares allotted, including: the class, currency and number of shares; the nominal value of each share; and the amount paid or unpaid on each share.
- Details of any non-cash payments for the shares, for example, awarding bonus shares, or shares given in exchange for anything other than cash.
- A statement of capital detailing the company’s issued share capital at the date of the return.
- The prescribed particulars attached to each share.
- An authorizing signature on behalf of the company.
Before allotting any new shares, it is important to check the company’s articles of association and any shareholders’ agreement for any clause affording pre-emptive rights to existing shareholders. If any such provision is in place, this means existing shareholders have the right to any new shares issued in the company ahead of an incoming shareholder.