This chapter considers the statutory framework governing share capital requirements including the provisions with respect to allotments of shares, the rules on premiums and discounts, the requirements for authorisation to allot, and the need to provide pre-emption rights. The rules governing cash and non-cash payment for shares are also considered. For the largest companies, there are additional issues surrounding capital raising which are considered. The position governing public offers by private companies is reviewed as well as the intended reforms of the listing regime. There are significant changes to the rules on public offers of shares and the need for prospectuses and these requirements too are considered. The issue of possible liability for misleading prospectuses is also addressed.
