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A guide to company shares

Profile picture of John Carpenter.

Chief of Staff

Last Updated: | 16 min read
Last updated: 26 Apr 2023

Company shares are portions of ownership in a company limited by shares, with each one representing a percentage of the company. In this guide, we will explain the basics of owning company shares, the different types of shares that are available, and the rights and responsibilities attached to these shares.

Shares are owned by one or more individuals and/or corporate bodies known as ‘shareholders’ or ‘members’. The number, value, and types of company shares owned by members determine:

  • how much control and voting power they have
  • how much profit they’re entitled to
  • the limit of their financial liability for company debts

Shares are a form of property, which means they can be bought, sold, and transferred to other people.

Different types of company shares

The majority of companies issue standard ‘ordinary’ shares. This keeps things simple because ordinary shares provide equal rights and responsibilities to all shareholders. The rights attached to company shares, which include voting rights, dividend rights, and capital rights, are specified in the prescribed particulars in the statement of capital and articles of association.

However, it is possible to issue different classes (types) of company shares. This is often required when members want to distinguish the value of their shares and the various rights attached to them. Different types of company shares include:

Preference shares

These carry the preferential right of certain members to receive a fixed percentage of profits before other shareholders. In some cases, preference shares also offer the preferential right to capital distribution before other classes. As a result, however, this type of share often carries no voting rights.

Non-voting shares

Non-voting shares are typically issued to family members of the main shareholders, or to employees as part of a share scheme. This class enables existing members to maintain full control of the company whilst distributing a portion of profits to other people in a tax-efficient way.

An employee scheme is an effective way to align the interests of staff with a company’s values and objectives. The potential reward from their vested interest can motivate staff to work harder. Dividends from non-voting ordinary shares are typically used as a tax-efficient way to pay part of an employee’s salary.

Redeemable shares

Redeemable shares enable a company to buy back its issued shares after a fixed period of time. Often, they are created for employees and issued with the proviso that they are taken back if the employee leaves the company. Redeemable shares are often non-voting.

Alphabet shares

Alphabet shares are the most common form of multiple shares, such as “A” Ordinary, “B” Ordinary, and “C” Ordinary. They allow companies to separate ordinary shares into different classes by varying the prescribed particulars (rights) attached to them.

For example, one class may have a higher percentage of voting rights; another class may have full rights to capital distribution but no voting rights and another class of alphabet shares may be entitled to higher rates of dividends but not voting rights.

Management shares

Management shares carry a smaller nominal value than other classes and/or provide multiple voting rights. They are often held by the original members (aka ‘subscribers’) as a way to retain more control than newer shareholders.

Deferred ordinary shares

Deferred ordinary shares offer dividend distributions to the shareholder only after dividends have been paid to all other members who hold different share classes.

How many company shares do I need to issue?

Private limited companies must issue one or more shares when they are incorporated at Companies House. Each member must agree to take at least one share. There is no restriction to the total quantity that can be issued unless the articles of association contain a provision of ‘authorised share capital’. This is an optional clause that allows a company to restrict the number of shares it can issue during and after incorporation.

Benefits of issuing more than one share

If you intend to grow and expand your business or bring in a partner at some point in the future, you may wish to issue more than one share when you register your company. This will allow you to sell some of them when required. Provided you continue to own over 50% of the business, you will retain overall ownership and control whilst bringing in new company shareholders and raising capital.

Issuing a higher quantity of company shares is also beneficial for creating the image of a substantial, credible, and secure business.

The nominal value of a company’s issued shares represents the liability of its owners if the business is wound up or accrues debts that it cannot pay. This is an important consideration for creditors, investors, clients, and suppliers, all of whom want to feel confident about the viability and security of any business they become involved with.

Why do many companies issue 100 shares?

Many companies choose to issue 100 shares because each unit represents 1% of the business. This makes it easy to work out each member’s percentage of ownership and profit entitlement. It also allows the company to issue small portions of ownership to lots of investors, rather than large portions to only a few people.

Aside from these practicalities, issuing 100 shares has historical significance. Before the introduction of the Companies Act 2006, private limited companies were legally required to restrict their issued capital to a fixed amount. This was known as ‘authorised share capital’ and it determined the Stamp Duty that companies had to pay upon incorporation.

100 shares was the quantity chosen by most companies because it kept their Stamp Duty liability to a reasonable sum whilst allowing them to issue an acceptable number of shares during and after incorporation.

Whilst this restriction is no longer mandatory and there is no need to pay Stamp Duty to HMRC in such instances, you can still choose to include the provision in your articles of association.

Disadvantages of issuing too many shares

Whilst it can be advantageous to issue more than one share to each initial member, it can also have a downside. If a company is dissolved or unable to pay its bills, the nominal value of all unpaid issued shares (normally £1 each) must be contributed to the business. The more shares you issue, the higher the liability of each member.

For example, if you were to issue a quantity of 1,000 or 10,000 company shares, the collective liability of members would be £1,000 or £10,000, respectively, if the business got into financial difficulty. This is a significant liability, especially for a company owned by only one or two people.

Can I issue different share classes?

Companies can issue ordinary or multiple types of shares during and after incorporation.

Companies that issue only ordinary shares can only adopt the Model articles of association. However, if you want to register any class of shares other than ordinary, you will have to amend the Model articles or create bespoke articles to include different classes and their prescribed particulars.

If a company with Model articles of association chooses to issue different share classes after incorporation, the members will have to pass a special resolution to amend the articles to include the new share classes and associated rights.

What is the share capital of a company?

When a limited by shares company is incorporated, the members will decide how many shares to issue. Each member will then agree to take a certain quantity. The total nominal value of all of the issued shares creates the company’s ‘share capital’.

Example

  • You issue 100 shares
  • Each share has a nominal value of £1
  • The total share capital of the company is £100

The members of the company are required to pay the nominal value of their share(s) either at the time of company formation or at a later date (whichever is requested by the company). This represents the limited liability of the company’s shareholders (i.e the maximum amount of money they would need to pay if the company becomes insolvent).

What are issued shares?

Issued shares refer to the total number of company shares that have been created and taken by members at any given time, whether during or after incorporation. The minimum is one share, but there is no upper limit unless the articles of association include the provision of authorised share capital.

What value should I make my shares?

Every share has a nominal value, which is normally £1. The nominal value differs from the actual (market) value – i.e. how much it would sell for. You can attach different nominal values to company shares, and you can vary the values of different classes.

The nominal value of shares creates the total nominal capital of the company and its members. Shares are either paid for at the time they are taken, or they can be paid for at a later date.

A nominal value of £1 or less per share is preferred because it limits each member’s liability to a reasonable sum. The nominal value should also be considered when deciding on the total number of company shares to issue.

When do I have to pay for my shares?

You can pay for company shares as soon as they are issued. This is often preferable because most shares are issued or transferred for the purpose of raising capital for the business. However, there is no legal requirement to pay for them immediately, unless payment is requested by the company. Many companies’ articles do not permit partly paid or unpaid shares after incorporation.

If a company is unable to pay its bills or it is wound up, the members are legally required to pay for any unpaid shares immediately.

In most cases, company shares are paid for in cash, but it is possible to pay part-cash and part non-cash (e.g. goods, services, knowledge, expertise, or property). Shares can also be given in goodwill, issued as part of an employee scheme, or gifted to family members.

Can a company issue unpaid shares?

When shares are issued during or after company formation, the director should state whether some or all of them need to be fully paid at that time. The majority of companies require full payment of shares upon issue, but it is also possible to leave them partly paid or unpaid.

If full or partial payment is not required upon issue, members are legally liable to pay the nominal value at the request of the company. This request is known as a ‘call notice’.

Why would I issue unpaid shares?

Companies may choose to issue partly-paid or unpaid shares for a variety of reasons, including:

  • to set up an employee scheme
  • to retain the option to forfeit them from members
  • due to a member’s lack of funds at the present time – the member may be allowed to defer payment until a later date or pay in instalments until the balance is met
  • the capital is not required to set up or run the business
  • the company does not currently have or require a business bank account to accept payment
  • as part of a strategy to implement a merger or acquisition

Any private company that plans to offer unpaid or partly-paid shares will require altering the model articles to include a provision that authorises part-payment and non-payment upon issue.

Any payments received for the nominal value of shares should be transferred into the company’s business bank account. This is because all business transactions must be accounted for and fully traceable at all times.

If any shares are issued at a price in excess of their nominal value, the difference between the nominal and actual value is known as a ‘premium’. This sum must be transferred into a separate account known as ‘the share premium account’.

What are the prescribed particulars?

Prescribed particulars are the rights attached to company shares. They must be provided as part of the statement of capital, which limited by shares companies are required to complete in the following circumstances:

  • upon incorporation at Companies House
  • on the next annual confirmation statement if any changes to share capital have occurred since incorporation or since the previous confirmation statement was filed
  • when any other changes to share capital take place

Prescribed particulars are set out in the Companies (Shares and Share Capital) Order 2009. They vary between companies and different classes of shares. Essentially, however, they will stipulate the specific entitlements and degree of power that each share bestows upon the person who owns it.

The particulars must correspond with the details contained in the articles of association. The majority of companies issue ordinary shares and adopt Model articles from Companies House. In such instances, the following standard prescribed particulars of rights will be attached to each unit:

  • voting rights, including voting rights in exceptional circumstances
  • dividend rights – i.e. the right to receive a distribution of profits in the form of dividend payments
  • return of capital
  • redeemable rights
Filing prescribed particulars with Companies House

Prescribed particulars must be filed at Companies House in a variety of situations, including:

  • incorporation at Companies House
  • upon delivery of an annual confirmation statement
  • the allotment (issue) of more shares
  • the creation of a new share class
  • alteration of rights of a particular class
  • a reduction of the issued capital
  • redemption of redeemable shares
  • re-denomination of capital
  • the consolidation or sub-division of company shares
  • an unlimited company being incorporated as a limited company
  • the cancellation of shares when a company purchases its own shares

Bespoke particulars must be drawn up by a company that issues any class of share other than ordinary. The rights attached to each class will therefore vary. Members must collectively agree on the prescribed particulars to attach to each class, or to different shares of a particular class.

Whilst the prescribed particulars are outlined in the articles, any company with varied or complex share rights must provide a summary of these rights in every statement of capital. You cannot simply request that Companies House refers to the articles.

What voting rights are attached to ordinary shares?

Voting rights are outlined by the prescribed particulars. These rights can vary considerably. For most companies, however (the majority of which adopt Model Articles from Companies House), ordinary shares will carry one vote each. This enables members to cast a single vote at general meetings for every share they own. Therefore, members who own multiple shares will have more voting power than those who own fewer.

In addition to voting rights, ordinary shares usually carry equal dividend rights (the right to a portion of profits) and equal capital rights (the right to a portion of surplus capital if/when the business is wound up). This means that each member will be entitled to an equal distribution of profits and surplus capital in relation to their percentage of ownership.

Can I issue shares without voting rights?

It is possible to issue different share classes during and after company formation, provided the articles allow for it.

The most common classes without voting rights are ‘non-voting ordinary’ and ‘preference’. These two classes are often issued to members who take less financial risk in the company.

As a result, these members are not entitled to vote at general meetings, but they are entitled to receive a portion of the profits.

What is a statement of capital?

statement of capital is a document that provides a snapshot of information about a company’s issued shares at a given time. You need to complete a statement of capital when incorporating a limited by shares company at Companies House and when reporting changes to share capital on the confirmation statement. However, this is automatically done for you if these documents are completed and filed online.

Other changes that require a statement of capital include:

  • allotments of shares
  • re-denomination of shares
  • reduction of capital resulting from re-denomination
  • notice of consolidation, sub-division, redemption, or re-conversion of stock into shares
  • cancellation of re-purchased shares

For each share class, the following details should be included in a statement of capital:

  • prescribed particulars of rights (voting rights, dividend rights, capital rights, option to redeem)
  • total number of issued shares of that class
  • the aggregate nominal value of that class
  • the amount paid or due to be paid on each unit

Most of these documents can be filed via Companies House WebFiling or 1st Formations’ free Online Company Manager.

Keeping a record of company shareholdings

Limited companies must keep a record of all issued shares and the people who own them. The details of the first members and the shares they have taken will be recorded in the memorandum of association and statement of capital. This information is registered at Companies House and placed on public record. Companies must also record this information in their statutory register, which should be kept at their registered office or SAIL address.

Any members who join a company after incorporation should be given a share certificate. The company should keep a copy of these certificates. Members’ details must also be added to the statutory register of members and the PSC register (if applicable).

When existing company shares are transferred from one person to another, a stock transfer form must be completed, member approval should be sought (if required), and the board should resolve to accept the transfer. A copy of the stock transfer form should be kept with the company’s statutory registers. Companies House should be notified of the transfer in a statement of capital when the next confirmation statement is filed.

If new shares are issued, a letter of application by the prospective member(s) should be delivered to the company with the relevant payments, approval of the members should be sought (if applicable), and the board should approve the allotment. The director(s) must then file a Return of Allotment at Companies House no later than 1 month after the date of issue, along with an updated statement of capital. There is no need to provide shareholders’ details until the company files its next confirmation statement.

What is a share certificate?

Directors are responsible for providing a share certificate to any new member who joins the company after formation. This certificate serves as proof of ownership and it details the number and value of shares held by a shareholder.

There is no legal requirement to issue a certificate to subscribers because their names and holdings are recorded on the memorandum of association. However, it is still commonplace to issue them.

What information does a share certificate contain?

A share certificate can be in digital or paper format and it should display the following information:

  • certificate number
  • number, class, and value of shares held
  • name of the company in which they are held
  • Company Registration Number (CRN)
  • name and address of the member
  • amount paid or due to be paid
  • director(s) signature
  • registered office address

Members should ensure the safekeeping of their certificates because they may be required at some point in the future. The director(s) should also ensure that the company keeps a copy of all certificates at its registered office address or SAIL address.

There is no need to provide copies for Companies House. The director(s) will provide Companies House with the details of new members when the next confirmation statement is delivered.

About The Author

Profile picture of John Carpenter.

John is Chief of Staff at 1st Formations and statutory director of the BSQ Group, responsible for assisting the CEO, HR, recruitment and content proofreading. He has an MSc in Digital Marketing Leadership from the University of Aberdeen and certificates in Anti Money Laundering, and Company Secretarial Practice and Share Registration Practice. John was previously operations director at a Mayfair-based law firm.

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Comments (35)

Segun Solomon

September 7, 2024 at 9:04 am

Thanks a bunch for these very pieces of useful information provided as always.

I incorporated Sydmore Africa LLC in Nigeria, having similar business laws as that of the US, through my attorney. The nominal share is 10,000,000, each share issued as 1 NGN. I own 90% of the shares and gave 10% to my wife.

Now, we intend to raise capital through by issuing post-it corporation ordinary shares to interested investors. We did the current market value of Sydmore and found that we can now issue each share as 5.50 NGN against the initial 1.0 NGN value per share.

Do you offer services around helping companies like Sydmore to raise capital through investors, peradventure we intend to raise 100,000,000 NGN?

I have given the earlier narratives so that you will understand the circumstance of Sydmore at the moment. Should there be the need for further clarifications, I’ll be more than ready to do that.

    Mathew Aitken

    September 10, 2024 at 9:05 am

    Thank you for your comment, Segun. Unfortunately, we do not offer services to help companies raise capital.

    Please accept our apologies for any inconvenience caused.

    Kind regards,
    The 1st Formations Team

Rod Lewis

August 9, 2023 at 3:47 pm

Hello,
I find your website very informative but I can’t find an answer to my question.
How are shares replaced if the owner loses them?

Andrew

December 19, 2021 at 6:49 pm

Great info. As a sole director/shareholder with 1 UNPAID share in a company which has gone through MVL, for the purpose of the capital gain computation on company disposal would you put ‘£0’ as the “cost or market value” or ‘£1’ as reflecting the nominal value? Thanks

    1st Formations

    December 20, 2021 at 9:54 am

    Thank you for your kind enquiry Andrew.

    Unfortunately your question is highly technical from a tax perspective. As we are not tax accountants, we are not able to provide advice on this particular matter. We would recommend you contact a tax accountant to discuss this matter further.

    We are sorry we could not be of more help.

    Regards,
    The 1st Formations Team

Jason Morris

February 8, 2021 at 2:33 pm

Hi, 3 shareholders (also directors) incorporated in Jan 2018, with 3 equal shares of £1 each, one director left on their own will, that director never paid for their share, nor do they have a share certificate. This shareholder set up a company in direct competition, they now want a copy of the full accounts. Are they still classed as a shareholder if they never paid or were issued with a certificate ? Do we have to send a copy of accounts? Thank you

    John Carpenter

    February 9, 2021 at 6:19 am

    Thank you for your kind enquiry, Jason.

    Whether the person you speak of is a shareholder or not is determined by whether they were ever entered into the Register of Members, which is a statutory register which all limited companies must keep. If they have not been entered into the register of members, then technically they are not a shareholder. However, if you formed the company via a company formation agent, it is likely a register of members would have been created upon incorporation and that that shareholder would have been entered into it at the time. However, if you formed the company with Companies House directly, you would have had to create the Register of Members yourself.

    If they are a member (shareholder) based on the above, then they are entitled to a copy of the accounts; however, they are not entitled to a copy of the accounts.

    I trust this information is of use to you.

    Regards,
    John

Jonathan

March 6, 2020 at 11:55 pm

Hi.

I fancy issuing 10000 shares at a penny each, split 50/50 my wife

Or even 1000 shares at 10p each on the same split.

So £100 total.

Is that feasible? And does it have any draw backs?

    John Carpenter

    March 9, 2020 at 8:55 am

    Hi Jonathan,

    The answer to your question depends on the circumstances of the company. If the company has not yet been incorporated, it is perfectly feasible to issue 10,000 shares at £0.01 GBP each, or 1,000 shares at £0.10 GBP each, split 50/50 between yourself and your wife.

    However, if your company has already been incorporated, the nominal value of the shares which have already been issued is a factor in issuing more shares the way you describe in your question.

    For instance, if all shares currently issued for the existing company do not already have a nominal value of £0.01 GBP (or £0.10 GBP if you wish to issue 1,000 shares at £0.10 GBP each), you would either need to create a second share class with the nominal value of £0.01 GBP (or £0.10 GBP dependent on your choice), or you can subdivide the existing shares to change their nominal value to bring them in line with the value of each new share you wish to issue.

    If you have an existing company, and wish to either create a second share class or subdivide the existing shares, please send an email to cosec@1stformations.co.uk, and we will be able to provide you a quote for carrying out this work for you.

    If you are looking to form a new company, any of our packages would be suitable for the needs you describe above. Please see here for our packages: https://www.1stformations.co.uk/compare-packages/

    I trust the above information is of use to you.

    Kind regards,
    John

Jamie

December 2, 2019 at 4:59 pm

If a company has issued one share to four directors (one each) but a further 5th share is owned by all four directors, do we say that they own 1 share each or only 0.25% of the fifth share?

    1st Formations

    December 12, 2019 at 9:38 am

    Hi Jamie
    Thank you for your question.
    My understanding of the situation you have described is the four directors each own one share and jointly own another share, i.e. the fifth share. Please also note all joint shareholders do not have the same rights. You may find this article of interest: https://www.informdirect.co.uk/shares/joint-shareholdings/
    Kind regards,
    Graeme

Steve Munn

May 31, 2019 at 4:26 pm

Hello,

If my dad wants to gift his shares within our company to other family member shareholders including me, does the split have to be equal amongst the remaining shareholders or can he share them i whatever proportions he chooses?

    1st Formations

    July 8, 2019 at 4:07 pm

    Hi Steve,
    In general, there is nothing to dictate how many shares can be transferred to who. If your company’s articles has pre-emption rights on the transfer of shares, however, the other existing shareholders will be entitled to take up the shares being transferred, in proportion to their existing holding.
    I hope this helps.
    Kind regards,
    John Carpenter

Adam Gerrard

February 21, 2017 at 2:24 pm

When I formed my company, I gave myself and my fellow shareholder 1 share each valued at 50p a share… How do I add more shares so that we each have 50 shares each valued at £1 each?

    1st Formations

    February 28, 2017 at 10:05 am

    Dear Adam,
    Thanks for your message.
    You can make the changes you require by filing 2 separate sets of information with Companies House. It would be better to increase the number of shares the company first and this would require an SH01 form to be sent to Companies House along with a special resolution in the name of the company. Once this has been accepted you could then file a form SH02 to increase the share capital along with an ordinary resolution in the name of the company.
    I would advise seeking the help of an accountant or solicitor to help you with this if you are unsure as to how to proceed.
    Kind Regards

James Rudder

February 10, 2017 at 6:05 am

Hi
My limited company has two £1 ordinary shares, one for me and one for my business partner, ie we jointly run and own the business.
His father is investing £50, 000 into the business in return for 50, 000 preference shares, ie with no voting rights so we retain control.
Would that mean he would then effectively own 99.9% of the business?
Thank you.

    1st Formations

    February 28, 2017 at 10:02 am

    Dear James,
    The ownership of the company will depend on the rights attached to each type of shares so I would advise that you speak to a solicitor to ensure you get the correct terms included in the new shares and if required make changes to the rights of the existing shares.
    Kind Regards

Adam Smith

February 8, 2017 at 8:21 pm

Hi,

I have formed a C.I.C Ltd by shares with 4 directors.
I’m trying to raise capital of £50,000.
How do I issue shares to create this investment whilst obtaining overall ownership of the business for the 4 directors .
I’m confused

    1st Formations

    February 9, 2017 at 12:34 pm

    Dear Adam,
    Thank you for your message.
    Unfortunately we are not able to advise on accountancy matters are we are not professional advisors. I would suggest you seek the advice of an accountant regarding your question.
    Best regards,
    1st Formations Team

Fiona

January 12, 2017 at 2:39 pm

My husband has 20 C class shares of a private company does this mean he holds a percentage of the company

    1st Formations

    February 9, 2017 at 10:40 am

    Dear Fiona,
    Thank you for your message.
    Shares in a company mean that the holder has some ownership of the company. Each type of shares has specific “rights” attached to them which determine what the shares entitle the shareholder to for example voting rights or rights to dividends.
    Best regards,
    1st Formations Team

Kyle

December 19, 2016 at 11:04 am

Hi Rachel,

My director and I have been discussing the option of giving me shares in the company. At the moment I assume they will be no-voting shares as my director is only offering to give me shares and not the option to purchase the shares?

He has advised me to get independent advice before I proceed with anything, so I would like to find out what cost implications, liabilities and taxations will be when given a percentage of profits or dividends? What are the negatives from an employee’s point of view?

Thank you in advance for your advice

Regards

Kyle

    1st Formations

    December 22, 2016 at 3:14 pm

    Dear Kyle,
    The question you have is a question for an accountant. We are not accountants so are not able to advise you in this case.
    Best regards,
    1st Formations Team

Agnese

December 6, 2016 at 3:11 pm

Hi Rachel,
Do I need to pay any tax on issuing say additional 1000 shares into Ltd.
Share nominal value is £1 per share.
Thanks.

    1st Formations

    December 21, 2016 at 5:30 pm

    Dear Agnese,
    The question of whether tax is payable upon the issuance of shares is something that an accountant would be best placed to advise you about though I would not expect any tax to be payable if the shares were new shares for your company.
    Best regards,
    1st Formations team.

alan

November 24, 2016 at 2:51 pm

Hi Rachel, Your site is a massive help! Thank you
Im going to be “going it alone” and issuing one share at £1, on the Amount Unpaid do I put £1 too?
And again on the next section, in Shares/Stock held – what do I put where it says amount paid up on each share and amount unpaid on each share? As of this second i havent paid anything obviously so im a little unsure but dont want to mess it up.
Thanks Alan

    1st Formations

    December 21, 2016 at 5:24 pm

    Dear Alan,
    Your shares are only unpaid if you have not paid the value of your shares into a company bank account. In your case if you have paid the £1 to the company then you would calls your share as paid.
    Best regards,
    1st Formations Team.

      Dustin

      January 4, 2017 at 1:20 pm

      I feel like I’m missing something here. How can you have paid for the shares into a company bank account when you can’t set up a bank account before the company exists? Doesn’t that mean that when forming a company, all shares are unpaid?

        1st Formations

        January 5, 2017 at 11:57 am

        Dear Dustin,
        Thank you for your message.
        You are correct in your understanding that all shares are unpaid at the point the company is formed as there is nowhere to pay the monies into.
        Kind Regards

josh

October 25, 2016 at 3:05 am

Hello im just registering my company but its asking me abouit the shareholders. im running this business on my own and their is no one else involved! on the website it says number of shares and in the boix is “default 1” and next to it it says share value (pence) and next to that box it says share type!
what do i insert into these boxes to make me own the whole 100% of the company?

hope to hear from someone soon
thanks josh

    Rachel Craig

    October 25, 2016 at 12:09 pm

    Hi Josh,

    If you’re setting up the company on your own, you should insert your details where it asks for shareholder information – you will be the sole shareholder of the company, thus owning 100% of the business.

    It is common to issue just one ‘ordinary’ share with a nominal value of £1. It’s entirely up to you if you want to issue just 1 share (which will represent 100% of the company) or multiple shares – perhaps 10 or 100, for example. You would own all of those shares, but you would be have the option to sell some of them (i.e. a percentage of the business) to other people in the future if you wished to do so. However, you always have the option to create more shares after your company is set up.

    I hope this helps clarify matters but do get back in touch if you need more help, or give our customer service team a call on 020 7871 9990 if you want to speak to someone in person.

    Best wishes,

    Rachel Craig

Mags

October 9, 2016 at 6:54 am

If I own 100 B shares of a company does that mean I own a percentage of the company?

    Rachel Craig

    October 11, 2016 at 2:10 pm

    Hi Mags,

    Yes, you will own a percentage of the company. It will depend on the representative value of your shares in relation to the total number and value of shares issued by the company. I would advise contacting the director to clarify how much of the business you own and what rights you have.

    Best wishes,

    Rachel

      Mags

      October 18, 2016 at 11:48 am

      Many thanks Rachel