The case study in question is associated with the area of ​​corporate law. Company law deals with the regulation of the powers, rights, duties and responsibilities of the company and voters closely associated with the company. Company law incorporates the Companies Act 2006, which regulates the relationship between the company and its directors. The company is a separate legal person, 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 relation to this, it is necessary to examine the specific areas of the power to assign shares, the reasons on which objections can be raised and the procedure for transferring shares. Once each area has been carefully examined, a conclusion on the legal situation can be determined. Allotment of shares Shares within a company can be acquired by original acquisition. This is when new shares are issued to existing shareholders or third parties making them shareholders and members of the company. Referring to the Companies Act 2006, sections 549-551, it regulates how a company's share capital and the issue of new shares are to be treated. If a company wanted to expand, one method of injecting capital into a company would be to allocate shares. Each share must have a fixed nominal price; in S.542 (2) of the CA 2006 it is explained that if an award of shares does not have a fixed price then it will not be valid. If a company has been registered under the Companies Act 1985 (or earlier), it will have an authorized capital figure in its articles of association. This is the maximum number of shares the company can allocate. If the expected assignment had been higher than the authorized amount…… by document……, the transferee would have been fully aware of the existence of the right of pre-emption. In the event of a court ruling it may be held that a fraudulent deal occurred as they were aware of the existence of the pre-emptive rights agreement and that the minority shareholders may have intended to invoke those rights under section 561 of CA 2006. If the share allotment were to take place, Peter and Michael would oppose this, as this would lead to a dilution of their shares and make the shares less valuable. Finally, in relation to the transfer of his shares by Peter to Verity, provided that the correct procedure for the transfer of shares is carried out in accordance with section 771 of the CA 2006, once the share certificate has been presented to Verity and the shares updated in the Members Register then the transfer will be fully legal.