Legal English – Peter’s Pills – Lesson 75 – Allotting shares, Issuing shares and Placing shares

Legal English for Notaries - By Federnotizie

Allotting shares, Issuing shares and Placing shares

Transcript:

Hello!

Are you sure you know the difference between “allotting shares”, “issuing shares”, and “placing shares”? If not, then this is important for you.

  1. Allotting shares (assegnazione; attribuzione): This refers to the formal process by which a company creates and designates new shares to specific individuals or entities. Allotment typically occurs (avviene) when new shares are created, such as during a company’s initial incorporation or subsequent capital raising rounds (cicli di raccolta di capitale). Allotment involves the company’s board of directors authorizing the issuance of shares to individuals who have applied for or are entitled (hanno diritto) to receive them, based on existing shareholder agreements or subscriptions;
  2. Issuing shares (emissione): Once shares are allotted, issuing shares involves the actual (effettivo) transfer of those allotted shares to the shareholders. Issuing shares completes the transaction initiated by allotment by transferring ownership from the company to the shareholders;
  3. Placing shares (collocamento): Placing shares involves selling shares directly to a select group of investors, typically institutional investors or high-net-worth individuals (individui con un elevato patrimonio netto), rather than (anziché) making them available to the general public through a public offering

In essence, allotment is the promise or assignment of shares, while issuance is the delivery and registration of those shares and placing is associated with the broader process of distributing shares to the market.

Thank you very much, and see you next time for more Peter’s Pills to improve your legal English.


Read more about Secondary Capital Raising in the UK here: “UK Secondary Capital Raising Review – July 2022” (.PDF).


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