Share allotment refers to the process of creating and issuing new shares by a company to new or existing shareholders in exchange for cash or other considerations. The process involves issuing new shares and facilitating capital infusion into the company, which governs the distribution of ownership stakes and confers rights and responsibilities upon the recipients, who become shareholders.

Allotment of shares can have implications for any existing shareholders share proportion. Typically, new shares are allotted to bring on new business partners. Companies can allot shares and other resources when demand is much stronger than the available supply. The main reason that a company issues new shares for allotment is to raise money to finance business operations.

The process of allotting shares involves confirming the current shareholdings, the number of shares to be introduced, and the resulting share structure of shareholders. When it comes to allotting shares to a new shareholder, the company will also need to confirm their name, date of birth, nationality, residential address, proof of ID, and relationship to the other shareholders in the company. Shares must be allotted through a board agreement, and a board meeting should be held to agree on any changes to the companys share structure.

Private companies can allot new shares only after filing the Return of Allotment of Shares transaction via BizFile+, while public companies limited by shares can allot new shares anytime and must file the Return of Allotment of Shares transaction within 14 days from the date of allotment.

In summary, share allotment is the process of creating and issuing new shares by a company to new or existing shareholders in exchange for cash or other considerations. The process involves issuing new shares and facilitating capital infusion into the company, which governs the distribution of ownership stakes and confers rights and responsibilities upon the recipients, who become shareholders.