Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Allotment definition

What does Allotment mean? In company practice, an allotment is the company’s act of appropriating new shares to an applicant so the applicant acquires the unconditional right to be entered in the register of members for those shares. Under the Companies Act 2006, section 558, shares are taken to be allotted at that point; this statutory meaning applies in England & Wales, Scotland and Northern Ireland. Irish company law uses the term in the same way under the Companies Act 2014, although there is no identical statutory definition. Key features and practice points: - Directors must have authority to allot and must comply...

Allotment and Issue of Shares: UK Companies Act 2006 authorities, pre‑emption, consideration, procedures, filings and penalties; additional requirements for listed companies (pre‑29 July 2024 listing regime)

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Practice notes

STOP PRESS: A far‑reaching overhaul of the UK listing framework took effect on 29 July 2024, removing the premium and standard listing segments and introducing a single category for equity shares in commercial companies on that date. The commercial companies category is strongly disclosure‑led and sits alongside other categories such as shell companies, secondary listing and closed ended investment fund categories. A new UK Listing Rules sourcebook came into force to implement these changes and the previous Listing Rules sourcebook was revoked. The new sourcebook replaced the old sourcebook when these reforms commenced. For further information see Practice Note: Reform of the UK listing regime—fundamentals. This fundamentals note reflects the listing regime as it stood before 29 July 2024. A company’s share capital comprises the number of shares it has allotted and issued to shareholders at any given time. Subject to certain exceptions, the directors of a company must not exercise any power of the company to allot shares (or to grant rights to subscribe for, or convert any security into, shares) other than in accordance with the Companies Act 2006 (CA 2006).

What is the difference between an allotment and issue of shares?

The terms ‘allotment’ and ‘issue’ are...

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Web page updated on 21/05/2026

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