12.5 ISSUE OR ALLOTMENT OF SHARES
On the issue or allotment of shares the money paid by the new shareholder is paid into the company and credited to the share capital and or share premium account. In the instance of an issue the directors place the value on the shares. The issue of shares is a risky area as minority or outside shareholders percentage holding may be reduced. One also needs to be aware of this where there is a capitalisation issue. Please refer to the section on pre-emption rights.