What is required for directors to issue or allot shares?

For directors to issue or allot shares, authority is typically required either through an ordinary resolution passed by the shareholders or as specified in the company’s articles of association. An ordinary resolution is a decision made by a majority of shareholders voting in favor, which provides the necessary backing for the directors to proceed with the share issuance.

The articles of association may also grant specific powers to directors regarding share issuance, allowing them to act within the framework of the company’s governance. This flexibility enables companies to rapidly respond to funding needs or strategic initiatives, ensuring that the process aligns with the company’s constitution and shareholder interests.

Other options, such as requiring government approval for public companies or approval from the stock exchange, are not necessary for the initial allotment of shares under the general corporate governance framework in most jurisdictions. Typically, these additional approvals might be relevant in more specific contexts or advanced transactions but are not standard requirements for issuing shares under normal circumstances.