Hi tonydelRegarding your question about the issue of shares – my...

Hi tonydel
Regarding your question about the issue of shares – my understanding is that it depends on the shares being issued; i.e., whether they are preference shares, or ordinary shares. A company has the power to issue ordinary shares in itself as it sees fit – this is determined collectively by the Directors. There are onerous disclosure requirements however when it comes to this issue of shares (i.e. a prospectus etc - unless there’s an exemption). However if preference shares are issued then shareholder approval is required (this is because preference shares alter class – voting – rights). Please do not take this as gospel – I don’t claim to have any knowledge of the Corporations Act! This is just my general understanding and so in answer to your question, yes they can, but as long as they are ordinary shares.