Company Shares

[rafhelp]

I set up a company last year for the sole purpose of making the company look more professional.

It has been dormant since and now I have to fill in the annual return.

The question is I am trying to fill out the share capital information and I am presented with the following details which I am required to fill in:

1 - Currency: GBP
2 - Class of share:
3 - Amount paid up on each share:
4 - Amount unpaid on each share:
5 - Number of shares:
6 - Aggregate nominal value:
7 - Prescribed particulars (of rights attached to shares)

I am not sure as to what to put for sections 3,4 and 7. The side notes donot make this any clearer.

When the company was set up for some reason, which I cant remember, I asked for ALL the shares to put in my name. Say for example there were 500 shares of £1 value each. Does this then mean I owe the company £500? Because I was not told or aware of this at the time. My understanding was that I set the number of shares, set their value (£1) and then specify who initially owns them when setting up the company.

Any insight/advice would be appreciated.

[elainec100@cheapaccounting]

You should find the info you need in the memo and articles of association i.e. the incorporation documents.

I have to say it is a bit worrying that you don't know this info.

What did you instruct your formation agent to set up?

You will of course need this for your dormant accounts which are different to the annual return you are working on.

[Richard231]

Per your last paragraph, yes you owe the company £500 (in your example).

If you have a Directors Loan Account set up then you can put this against that, or pay the money into the bank. Either of these will mean that you can put on the AR 3) £1.00, 4) NIL.

It's a dormant company, so you prob don't have a DLA, neither a bank you use, in which case you had better put 3) NIL, 4) £1.00

When you prepare your year-end dormant accounts, you will need to DR 'Debtors', CR 'Shares'. the chances are that these will be the only figures on your balance sheet - if so you can file a DCA as opposed to Abbreviated Accounts.

As always, I would say check with you accountant.

[David Griffiths]

When you prepare your year-end dormant accounts, you will need to DR 'Debtors', CR 'Shares'. the chances are that these will be the only figures on your balance sheet - if so you can file a DCA as opposed to Abbreviated Accounts.

.

The form DCA is now called form AA02, but you can't use it if there are debtors because there is no provision on the form for debtors. The correct place is called up share capital unpaid.

[rafhelp]

Ok I have decided, after contacting companies house, that i want to transfer the shares back into the company name, so that I actually only own 2 shares at £1 each.

Whats the easiest way of doing this?

Do I have to fill in forms etc.. if you have experience in this advice would be appriaceted,