Shares advice- I issued too many

[FairSmart]

When I set up my company I had no clue about shares.
I issued 1000 shares 930 to me and 70 to a shareholder.

Really I wanted to do a share scheme with the 7% shareholder so I can issue more shares to him and others

So really should have had 100 issued. 93 and 7
Is it too late now?

The company hasnt started trading and was registered 07/08/09

 

[sysconfig]

I hope you don't mind me asking. Just out of curiosity: What's the difference between 930/70 and 93/7 except the number of shares? I mean the percentage is the same?

 

[gaogier]

Why do you want to have 100 shares?

1000 shares is just 10% extra, as its still in the 10% its still going to be easy to follow.


Where companies have millions of shares, thats when it gets complicated.

Its not how many shares the company has, its how much each share is sold for. You sold 70 shares, lets say for £1 each, therefore its £70... however, you need to sell 7 shares for £70. If you increase the shares, the value of the shares will drop. If you decrease them, the value will increase.

I believe you can change how many shares a company has, as they often offer 2 shares for the price of 1 when merging... I am not 100% sure on how this works. It maybe worth reading this, http://en.wikipedia.org/wiki/Stock and all links related to Stocks.

 

[John Mansley]

I think the OP wants to be able to issue more shares to the 7% shareholder in the future but the full authorised share capital has been issued.

You can easily pass a special resolution to increase the authorised share capital, though. Once this is lodged with Companies House you'll be fine to issue more shares.

 

[tony79]

Why do you want to have 100 shares?

1000 shares is just 10% extra, as its still in the 10% its still going to be easy to follow.

OK I know it's before my morning coffee but I'm fairly certain 1000 is not "just 10% extra" than 100.

 

[tony79]

Why do you want to have 100 shares?

1000 shares is just 10% extra, as its still in the 10% its still going to be easy to follow.

:|:|:| OK I know it's before my morning coffee but I'm fairly certain 1000 is not "just 10% more" than 100.

 

[hougtimo]

:|:|:| OK I know it's before my morning coffee but I'm fairly certain 1000 is not "just 10% more" than 100.

10*100=1000?

 

[tony79]

10% of 100 is 10. So surely 10% more than 100 is 110?

 

[DataWise]

FairSmart:
Really I wanted to do a share scheme with the 7% shareholder so I can issue more shares to him and others

No problem. Offer them some of yours!

Paul Reed

 

[FairSmart]

I think the OP wants to be able to issue more shares to the 7% shareholder in the future but the full authorised share capital has been issued.

You can easily pass a special resolution to increase the authorised share capital, though. Once this is lodged with Companies House you'll be fine to issue more shares.

Thank you for this.

I had issued the 1000 930/70 split but needed more incase i need to give away shares to other individual but cant go over the 1000 without the above

Would it be too late to ask for any of the 70 shares back? He hasnt paid for them yet. Not sure what im going to do here.

 

[hougtimo]

10% of 100 is 10. So surely 10% more than 100 is 110?

Yup. Maths fail on my part.

 

[John Mansley]

Would it be too late to ask for any of the 70 shares back? He hasnt paid for them yet. Not sure what im going to do here.

He may agree (I wouldn't in his position!), but once the share allotment or transfer documents are signed he's under no legal obligation to relinquish his shares.