Company registration shareholding

[Andy008]

I have recently incorporated a company at Companies House in Cardiff, mainly for name protection purposes at present.

The forms I sent to Companies House showed 1000 nominal shares as the amount issued as standard. As I understand it, if, for example �100k was invested in the company as seed capital, the shares would therefore automatically be worth �100 each, (assuming that the �100k is the company's only asset/s).

Companies House returned the forms to me or alteration as apparently they needed them to read so as I was the only director and shareholder (at present), holding one share, and with 999 yet to be issued.

Can anyone please clarify this situation for me as I am confused as to where I stand regarding the actual ownrship of the shares, (though the company is not trading yet).

Thanks.

[ummmm]

I had this problem....you just put 1 if you are the only share holder. It's got nothing to do with money.

Ring them....I did and they talked me through it over the phone. I can't remember what they said though!

[Didwot]

There distinction between
"authorised shares" the maximum amount of shares the company is able to issue; and
"issued shares" the number actually issed to the shareholders
A company can have an autorised share capital of 1 million �1 shares, but have only issued one or two of them. Subject to dealing with the matter properly it could issue more shares if necessary.
The price for which the shares are issued is a matter for negotiation between the company and the shareholder.
The shares may have a nominal value of �1.00 each but be issued at �10..00 each. This requires proper reflection in the accounts as the share capital is only �1.00 per issued share, but there needs to be a "Share premium account" showing the other �9.00.
The actual value of the shares will depend on the trading performance of the company from time to time, and how much a third party would buty the company for.
When you isse shares in a company it is necessary to make a return to Companies House to reflect what you hvae done. I am unsure what it is that Companies House have returned to you, but it is all to easy to send them the wrong form!

[gammaray]

The company has a nominal value of �1 for which you are the sole share holder. It just means you and you alone own the company. The money you invest is noted in the accounts as an asset and has nothing to do with share value as it applies to Ltd Co's. It's only if you float the company that there is a cash value attributed to the shares, but again it will have nothing to do with the company's cash assets. You would decide how many shares to sell in the company, for example 24% of the value placed on the business split into how ever many chunks you want to sell.

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