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If your business is planning to buy shares in another company, you'll have to fill out an application for shares and apply to the Board of Directors formally.
Read on to learn what you need to know to craft your own application for shares document, plus, where you can download free templates online.
What's in this guide?
- What is an application for shares?
- Application for shares vs Application by individual for allotment of shares
- What does an application for shares include?
- How effective is an application for shares?
- Do I need to engage a lawyer?
- Get access to customisable application for shares templates online
- How do I write an application for shares?
- Where to get free legal documents and templates like an application for shares
What is an application for shares?
An application for shares is a legal document by an entity requesting an allotment of shares. It is written for the shareholders and is the first step in applying for an allotment of company shares.
When this application is signed, the entity agrees to bind by the constitution of the company. The application also acts as a record for the members' registry and will detail information of the new shareholding member and the allotment of shares.
Download this template at Lawpath
Application for shares vs Application by individual for allotment of shares
These two documents are almost identical except that one clearly states it's for an individual application and not another entity or company.
What does an application for shares include?
An application for shares can be a straightforward document that typically includes:
- Title: Application for Shares
- Name of the company in question
- Name and address of entity applying for shares
- Details of shares and sale price
- Constitution of the company clause
- Name and address of signee.
The application for shares must also contain a record-keeping component for the shareholders' registry that includes:
- Agreement of issue: details of issued shares
- Date of resolution: date the members agreed to the allotment of shares
- Entered in Register of Members: company name and date
- Issued share certificate number.
How effective is an application for shares?
An application for shares document is part of a standard protocol and must be used in order for an application to be considered by a company's Board of Directors.
Do I need to engage a lawyer?
You may not need a lawyer to draft up an application for shares. It can be a straightforward, one-page document. That said, you may well want to get a lawyer to read a draft version for peace of mind that what you're including is watertight from a legal point of view. Read about some of your options on legal advice.
Get access to customisable application for shares templates online
Does your company belong in this list?
How do I write an application for shares?
If you download a template that contains the accepted legal language and follows a standard format, it can take only a few minutes to customise it to suit your purpose.
Where to get free legal documents and templates like an application for shares
A quick search online will give you many legal resources to choose from. Most of these websites carry a wide range of documents and contracts. You can choose from a one-time fee to download or set up an account and enjoy free downloads. Take a look at some of these:
- Lawpath. Lawpath is an online legal resource for small businesses and entrepreneurs. You can view samples of legal document templates for free, but a fee is required for access to downloads and customisable options.
- LawLive. LawLive houses a large library of e-documents that you fill out and download. Registration is required and there is a one-time fee for downloads.
- LegalVision. For a monthly membership to LegalVision of $199, you'll get unlimited access to free downloads of legal document templates.
- Law Central. Law Central is a hub of information in law and business. It offers a 3-tiered membership plan, as well as one-time fee downloads.
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