If a company has yet to issue share(s), it can issue / allot share(s) to an existing or a new shareholder(s) for fund raising. However, according to s. 57B of the Companies Ordinance, prior approval must be obtain in shareholders’ general meeting for granting authorization to directors to have such power to issue / allot share(s), provided that the issue is on pro-rata basis.
According to s. 70(1) of the Companies Ordinance, the Company must have to deliver the issued shares to the respective shareholders within two months upon allotment.
A person is deemed to be the shareholder of a company legally only in the case that his / her name has been entered into the Register of Members of the company.
Upon allotment, the company has to file Form SC 1 to the Companies Registry within 1 month. If the consideration for the share is on non-cash bases, the company has to provide a certified copy of the contract or agreement showing details of the non-cash consideration. If no contract is signed, the company should provide and file Form SC 5 to the Companies Registry.