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By law, there must be at least one shareholder to take one share in the company. You can have another shareholder to take on an equal amount of shares, and then it would normally be allocated as one share each. Since authorised share capital has now been abolished by The Companies Act 2006, you can choose the number of company shares to be issued and distribute them accordingly. Here is an example of how your company shares could be allocated:

Andrew wants to take 100% of your issued company shares. So if your company issued one share, Andrew would take that share and own 100% of your shares. No matter how many shares you issue, he would take them all so if you issued 100 shares, Andrew would take all one hundred.

Susan and Andrew want to each take 50% of the shares in your company. So each would take 1 share in your company. Should you issue 100 shares, they would take 50 shares each.

Susan wants to take 80% of your company shares and Andrew wants to take 20%. So Susan will take 8 shares and Andrew will take 2 shares. Or 80 and 20 respectively where your company has issued 100 shares.

If you need any help and guidance about issuing shares, then please do not hesitate to contact us for some advice. We would be pleased to help!

in Company Formations
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