Share Allotment of limited company

In a limited company, the share allotment process is crucial in determining ownership and control among stakeholders. When a company is established, it is authorized to issue a certain number of shares, which can be allocated to individuals, institutions, or other entities. This allotment can occur during the initial formation of the company or through subsequent fundraising rounds. Shareholders typically have rights that correspond to their shareholding, such as voting rights and dividends. It's essential for companies to carefully consider their share allotment strategy, as it affects their capital structure and can influence investor confidence. Proper documentation and compliance with legal requirements are vital in this process to ensure transparency and protect the interests of both the company and its shareholders.