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Board Meeting : Issue of Shares

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Maharshi Shah

Board Meeting
Issue Shares
Last updated on April 28th, 2021

A board meeting is a formal gathering of a Board of Directors. Most of the organizations, being public or private, profit or non-profit, are ultimately governed by a body commonly known as Board of Directors. The members of this body cyclically meet to discuss strategic matters. After the incorporation of the company, the company needs to issue the shares certificates within two months from the incorporation date.

There are important details provided in a share certificate. They are as follows:

  1. Name of issuing Company
  2. CIN number (Corporate Identification Number) of such Company
  3. Address of the Company’s registered office
  4. Name of owners of such shares
  5. Folio number of member
  6. Number of shares which is represented by such share certificate
  7. An amount which is paid on such shares
  8. Distinct number of the shares
Board Meeting - Issue of Shares

Additional shares allotted to the new or existing shareholders should be issued within two months from allotment date. In a case related to the share transfers, the share certificates should be issued to transferees within a period of one month of receipt of the instrument of transfer by such Company.

Thus, review your Board Meeting Minutes immediately after the meeting. When your board meeting minutes are complete and finished, make sure they are distributed to board members as soon as possible. Once the minutes are approved by a vote of the members during the board meeting, they become part of the official record of the organization. It’s important that a copy of all minutes are kept in one place.

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FAQs

How many shares can a Company issue?

Typically a startup company has 10,000,000 authorized shares of common stock, but as the company grows, it may increase the total number of shares as it issues shares to investors and employees. The number also changes often, which makes it hard to get an exact count. Moreover, shares, stocks, and equity are all the same thing.

What are the types of shares?

– Ordinary shares. These carry no special rights or restrictions
– Deferred ordinary shares
– Non-voting ordinary shares
– Redeemable shares
– Preference shares
– Cumulative preference shares
– 7 Redeemable preference shares

Who decides the share price?

At the most fundamental level, supply and demand in the market determine stock price. Price times the number of shares outstanding (market capitalization) is the value of a company.

Got Questions? Ask Away!

  1. Hi @emmy

    When shares are issued by a Company, the share certificate must be signed by at least two directors or one director and the company secretary, if appointed.

    Hope this helps!