What is required for an unlisted company to issue new shares to specific investors?

Under the Commercial Act, shareholders in principle have the right to be allotted new shares in proportion to the shares they hold, so allotting new shares to investors who are not shareholders (a third-party allotment) requires a basis in the articles of incorporation.

It is also limited to cases where it is necessary to achieve the company's business purposes, such as introducing new technology or improving its financial structure, and the company must notify shareholders or give public notice of matters such as the class and number of new shares, the issue price and the payment date at least 2 weeks before the payment date. Since existing shareholders' stakes are diluted, it is also worth checking, when making a pre-IPO investment, that these procedures were properly followed.