limited company shares

hello, this is all very new to me, please can any one help me on issuse i have regarding my company shares? mainly on who can i sell them too, and how much they are worth. this is not much to go on but any help would be great .thankyou

 

[Shahkti]

You need to look at Companies House guidance, can't post URL but the page you want is gba6.shtml - Google it.

You have a number of shares issued in your limited company. They are worth whatever someone is willing to pay for them. To transfer them or to raise new shares you need to use appropriate forms. You would be well advised to have a shareholder agreement in place with the buyer(s).

 

[obscure]

Your correct in that you haven't provided anything like enough information to go on so any help will be rather limited.

The value of the shares depends on the value of the company.

You could sell the shares to anyone who might want to own them (either for the purpose of getting the dividend or because they want to own some of the company or increase the amount of shares if they already own some.

 

thanks for info, the company has a turnover of around two million, with last years profit (est) being £210,000 and the year before that they was £160,000 ( pre- tax) sorry if my knowledge is poor in this i was only the refurbishment manager and did not have many dealings with financial matters. Is there any way to get a guide price on my shares ? many thanks.

 

[Ozzy]

Your accountant would be able to calculate a base value for your company, and it is important to also be aware that a minority shareholding is worth less than a majority shareholding. For example, lets say the company overall is worth £100,000. A 10% share may only be worth £2,000 but a 75% shareholding may be worth £90,000.

Shahkti is correct, shares in private companies are generally only worth what someone who wants to buy them wishes to pay for them. When it comes to public companies the share value is dictated by the market and governed by the FSA regulations, so in effect fixed at their current market value at time of sale.

To transfer the shares they are either sold or gifted and this transaction is conducted on a stock transfer form available for the Inland Revenue. Depending on how the shares are transferred stamp duty may be due on the transaction and you may need to send the form to the Stamp Office with a cheque for the relevant amount of duty, and then the activity is recorded in the statutory records (company register) usually by the company secretary. Companies House records are then updated when the next annual return is filed.

If need any help conducting any of this it is a service we provide, and feel free to drop me a PM or call the office on 0800 061 2288.

 

thanks for reply, as of last year the share holders funds were £194,928 . how do i get my share of this?( this april that was hoping to be £ 250,000

 

[Ozzy]

In theory that is the money available in the company for distribution to the shareholders. The director's can declare at an AGM how much of this money to distribute to the shareholders whilst leaving sufficient still within the company to faciliate growth and operations.