Companies Act 2014 section 1024

Status of authority to allot shares conferred prior to company's re-registration as a PLC

Section 1024 deals with what happens to an existing directors' authority to allot shares when a company re-registers as a public limited company (PLC).

• Before re-registration as a PLC, directors may hold authority to allot shares granted by ordinary resolution under section 69.
• Upon re-registration as a PLC, this pre-existing allotment authority does not continue indefinitely.
• The authority automatically lapses at the conclusion of the first annual general meeting (AGM) held after the company re-registers as a PLC.
• A fresh authority to allot shares must therefore be obtained under the rules applicable to PLCs if the directors wish to continue allotting shares after that first AGM.