It’s the only way to get cash in which isn’t debt

I don’t think they are calling them unallocated shares, are they?

I think that’s an old companies act term that isn’t relevant anymore. I’m not an expert, but I think companies used to have an authorised share capital (which was the max number of shares the company could issue) and an issued share capital, being the actual number of shares held by shareholders.

The new companies act (2006) got rid of the concept of authorised share capital. If companies want to issue shares, they can, with the requisite approvals, without needing to first up the authorised share capital.

“Allotting” just means creating new shares and issuing them to shareholders.

Posted By: SimonOTBC, Jan 28, 08:30:25