The case study in question is associated with the field of corporate law. Corporate law concerns the regulation of the powers, rights, duties and responsibilities of the company and entities closely related to the company. Company law incorporates the Companies Act 2006, which governs the relationship between the company and its directors. The company is a separate legal entity, through the articles of association the powers of a company are designated and exercised by the board of directors on behalf of the company. In this regard, we need to examine the specific areas of share allocation power, the grounds on which objections may arise and the procedure for transferring shares. Once each area has been fully examined, a conclusion can be drawn about the legal situation. Allocation of shares Shares within a company can be acquired by initial acquisition. This is when new shares are issued to existing shareholders or third parties, making them shareholders and members of the company. With reference to the Companies Act 2006, sections 549 to 551 regulate how the share capital of a company and the issue of new shares should be treated. If a company was looking to expand, one method of injecting capital into a company would be through stock grants. Each share must have a fixed nominal price; in section 542(2) of the CA 2006, it is illustrated that if an award of shares does not have a fixed price, it will be invalid. If a company has been registered under the Companies Act 1985 (or before), it will have an authorized capital figure in its memorandum of association. This is the maximum number of shares that the company can grant. If the intended allocation were to exceed the authorized amount...... middle of paper ......, the transferee would have been fully aware of the existence of pre-emption rights. In the case of a court opinion, it can be considered that a fraudulent agreement took place when they knew of the existence of the pre-emptive rights agreement and that the minority shareholders may have intended to invoke these rights under section 561 of the Act. the CA 2006. If the share allocation were to take place, Peter and Michael would object, as it would result in dilution of their shares and make them less valuable. Finally, with regard to Peter's transfer of his shares to Verity, as long as the proper share transfer procedure is carried out in accordance with section 771 of the CA 2006, then once the share certificate has been produced to Verity and the updated actions are registered. in the membership register, the transfer is then completely legal.