Can a company have shares in reserve?

Can a company have shares in reserve?

June 06, 2019

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.

 

 

 

 

The information in this blog post (“post”) is provided for general informational purposes only, no information contained in this post should be construed as legal advice, nor is it intended to be a substitute for legal counsel on any subject matter. No reader of this post should act or refrain from acting on the basis of any information included in, or accessible through this post without seeking the appropriate legal or professional advice from the particular facts and circumstances at issue from a lawyer.This post is protected by intellectual property law and regulations. It may however be shared using appropriate sharing tools provided that our authorship is always acknowledged and this Disclaimer Notice attached

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