Shares of public companies cannot be dealt with officially on the stock exchange unless they have been granted quotation. This is applied for on formation of a company, but before it is granted, stringent conditions laid down by the stock exchange and the companies act must be satisfied.
A company must also supply regular information regarding meetings, dividends, directors' emoluments, half-yearly profit statements, etc. Even when a quotation has been granted, it can always be withdrawn again if the company ceases to satisfy the conditions, or if the exchange becomes dissatisfied with its integrity. Shares may be subscribed for on condition that a quotation is obtained. The monies would be repayable if it were not. In certain circumstances permission to deal on the exchange may be given without a quotation, but of course the shares would not feature in the official list.
A D V E R T I S E M E N T