Can a company have shares in reserve?
The answer is an absolute Yes! You can totally have shares in reserve. It is even advisable to do so. This is because for a private company, you can later allot those reserved shares to maybe employees who have done well, or to your children who were unborn at the time the first set of shares were allotted. That way, you don’t need to go through the stress of increasing the share capital of the company, you simply allot the shares from the reserve. This would save you money, time and the stress of following the required formalities of share increase.
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