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Q：
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What is an allotment of shares?
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A：
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An allotment of shares refers to the process of issuing and formal assignment of shares by a company to its shareholders.
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Q：
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Why do companies allot shares?
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A：
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Companies allot shares to raise capital for business operations, expansion for future development plans, investment in new projects, or debt repayment, while also attracting new investors by demonstrating financial stability and growth potential.
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Q：
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Who can allot shares?
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A：
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Both private and public companies can allot shares, with private companies limiting the number of shareholders, and public companies allowing an unlimited number of investors.
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Q：
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How are shares allotted to investors?
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A：
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Shares can be allotted to investors in cash or through considerations otherwise than in cash, such as property or services. The number of shares, subscription price per share, and terms of allocation must be approved by the board of directors or shareholders, and the allotment letter must be prepared and issued to shareholders.
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Q：
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What are the documents required for the allotment of shares?
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A：
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The following documents are required for the company secretary to register the allotment of shares:
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Members’ and board resolutions approving the issuance and allotment of shares;
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Letter for taking up shares; and
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Proof of payment of subscription monies, i.e. remittance advice, management accounts or other supporting documents.
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