VIC Can Company Directors Issue New Shares Without Members Meeting?

[GregsMoney]

I am one of three company directors of a Pty Ltd company. We wish to issue new shares to new members and want to know if we can do this without calling a members meeting. The directors all own shares. One of the members of is deceased and the shares are in escrow and the other shares are issued to his family trust now managed by the deceased member's wife who has no interest in the company.

We wish to bring in new capital which will dilute all members equally.

 

[Rod]

want to know if we can do this without calling a members meeting

No

wish to bring in new capital which will dilute all members equally.

Doesn't impact first answer.

Also check your member's share agreement in case there are special provisions relating to issue rights..

 

[Matthew Karakoulakis]

I am one of three company directors of a Pty Ltd company. We wish to issue new shares to new members and want to know if we can do this without calling a members meeting. The directors all own shares. One of the members of is deceased and the shares are in escrow and the other shares are issued to his family trust now managed by the deceased member's wife who has no interest in the company.

We wish to bring in new capital which will dilute all members equally.

Hi Greg,

I agree with Rod. If you would like specific legal advice regarding how to proceed, please feel free to contact me via Matthew Karakoulakis, Lawyer, AMK Law - Melbourne, VIC - LawTap - Find a Lawyer & Book Online Instantly.

Yours faithfully,