Share allocation

[baronsamedi]

Hi,

When I setup the my company a few months ago I set it up so that I was sole shareholder, owning only a single share.

What is concerning me is prior to claiming my first lot of dividends, is whether I actually have to buy the shares from the company or fill in any documentation to assign the share to me?

My suspicision is that as Im already the sole share holder from company formation that I wouldnt need to reallocate the share, but several friends have given my conflicting information i.e. some have had to pay a £1 to the business for the share, some have had to fill in a share allocation form.

I was just hoping someone had a definitive answer to this.

Regards

[Crossroads]

Hi,

When I setup the my company a few months ago I set it up so that I was sole shareholder, owning only a single share.

What is concerning me is prior to claiming my first lot of dividends, is whether I actually have to buy the shares from the company or fill in any documentation to assign the share to me?

My suspicision is that as Im already the sole share holder from company formation that I wouldnt need to reallocate the share, but several friends have given my conflicting information i.e. some have had to pay a £1 to the business for the share, some have had to fill in a share allocation form.

I was just hoping someone had a definitive answer to this.

Regards

You require the services of an accountant, and a dictionary.

Who set the company up for you?

[VectraMan]

When I created my Ltd. the formation agent had both shares and I had to fill out forms to get them transferred to me (I think I had to pay something too).

I created a Plan B Ltd. recently and a share each were issued to me and my co-conspirator from the start. There was an option to do it the other way, but no point.

So I think both ways are okay.

[Hex]

Best to check with your accountant.

I know I haven't paid anything for mine. The money I should have paid is shown in the director's loan account when my accounts are done, which suggests I owe the company the money but haven't paid it yet.

[ittony]

As far as paperwork in concerned, aren't these shares already assigned to you by virtue of the Memorandum of Association? I paid for mine as soon as I got a bank account up and running, just as a kind or ceremonial first transaction really, but my understanding is that you can keep it as a running debt and only pay it if the company is wound up or sold. But why not just pay it in and be done with it anyway, particularly if it's only a pound!

I would mind hearing from anyone who knows more about the paperwork side of things mind, perhaps I should have issued certificates at the time?