Board Resolution Compliance Details
Summary
A board resolution should confirm compliance with Section 561 of the Companies Act 2006, ensuring existing shareholders pre-emption rights are respected when issuing new shares. For issuing 100,000 shares, the resolution should state compliance with Section 561 and outline the allocation process.Full Conversation
issue of *,* shares
To address the issuance of *,* shares, you can modify the resolution as follows:
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Resolution
The Board of Directors of [Company Name] hereby acknowledges that the company has duly complied with the provisions of Section * of the Companies Act *. This section pertains to the pre-emption rights of existing shareholders in the issuance of new shares. The compliance ensures that all existing shareholders have been given the opportunity to purchase additional shares before they are offered to new investors.
The Board further resolves to issue *,* new shares to be allocated in accordance with the compliance of Section *.
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