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by Undo Capital
December 11, 2025
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What Is Allotment of Shares?

Allotment of shares is the legal process by which a company formally issues new shares to investors or shareholders following their subscription.

Allotment of Shares: Meaning

The allotment of shares refers to the moment when a company officially approves and creates new shares for an investor. To define allotment of shares in practice, it occurs after a subscription agreement is signed and payment is received. The board passes a resolution, and the shareholder is entered into the company’s register of members. A clear allotment of shares is essential for legal ownership, cap table accuracy and post-investment compliance. In the UK, share allotment must also be reported to Companies House using an SH01 filing.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.