The company may only issue shares up to the authorised share capital. In case if there is no available capital, it needs to be increased.
The following procedures must be followed:
Increase of Authorised Share Capital
- An Ordinary Resolution has to be executed by the General Meeting of the Shareholders for the increase of the authorised share capital
- The Company notifies the Registrar of Companies with a HE14 Form, which provides for the increase of the authorised share capital
Issuance and Allotment of Share Capital
- The Board of Directors of the Company passes a resolution approving the proposed issuance and allotment.
- Other shareholders waive in writing any pre-emption rights
- The secretary of the company makes the necessary amendments in the Corporate register.
- The Company issues a new share certificate in the name of the Allotee.
- Within 28 days from the date of the Directors’ resolution for allotment, the Company files with the Registrar of Companies the HE12 Form for the allotment of shares.
