Section A

Which TWO of the following statements regarding the allotment of shares in a private limited company are correct?

Directors of a private company with only one class of shares always need shareholder approval to allot new shares.

Directors of a private company with only one class of shares have automatic authority to allot shares unless restricted by the articles.

Pre-emption rights require new shares to be offered to the public before existing shareholders.

Pre-emption rights require new equity shares to be offered to existing shareholders in proportion to their current holdings.