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40: Contracts for issue of shares
or “Rules for companies when agreeing to issue new shares”
You could also call this:

“ Shares must be given out when a company is formed or joins with another ”

When you form a new company, you must give out shares right away to the people named in your registration application. You need to give them the exact number of shares that the application says they should get.

If your company joins with another company (this is called amalgamation), you must also give out shares quickly. As soon as the joining is official, you need to give shares to anyone who should get them according to the plan for joining the companies. You must give them the exact shares they’re supposed to have.

These rules make sure that when a company starts or when companies join together, everyone gets the right shares at the right time.

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Next up: 42: Issue of other shares

or “Company boards can issue shares as they see fit, following legal and company rules”
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Part 6 Shares and debentures
Issue of shares

41Issue of shares on registration and amalgamation

  1. A company must,—

  2. forthwith after the registration of the company, issue to any person or persons named in the application for registration as a shareholder or shareholders, the number of shares specified in the application as being the number of shares to be issued to that person or those persons:
    1. in the case of an amalgamated company, forthwith after the amalgamation is effective, issue to any person entitled to a share or shares under the amalgamation proposal, the share or shares to which that person is entitled.

      Notes
      • Section 41(b): amended, on , by section 6 of the Companies Act 1993 Amendment Act 1994 (1994 No 6).