Company formation advice

AdamSee

AdamSee

AdamSee

Associate
Joined
25 Oct 2002
Posts
1,758
Location
Winchester
I know, it's not the most interesting subject in the word, but I've been going through this page pretty thoroughly for quite a while:
http://www.companieshouse.gov.uk/about/gbhtml/gbf1.shtml

Form 10, 12, memorandum of association, articles of association.

But there's one thing missing, or so it seems. I can't see where you'd designate shares to the directors.

I've seen a few company formation sites on the net, and it seems to make it much easier. I'm wondering if that's the better way to about it and also should I designate all share capital at the start?

Thanks fellers
 
Directors sharholding falls within either the Articles or Memorandum... can't remember which :(

Strewth! I did an exam on this about 6 weeks a go!
 
From memory - and I'd have to look it up to check, :-

- at the first board meeting, agree the issue of shares
- minute that agreement in the meeting minutes
- record the allocation and issue in the Combined Register, or Share Register
- issue the actual share certificates
- send form 88(2) to Companies House with the details.
 
Yeah, I've seen a lot of companies that do that, I'm wondering if there is any pitfalls from doing it that way? It seems really good that you can assign shares at the start.

But the major question relates to the shares. If you have 1,000 shares and only assign 100 of them to the directors, what happens to the rest of the 900 share capital?
 
I think these can be authorised/issued later. I am the sole director in my company and my accountant advised that I only issue one of 1000 shares.

I would suggest you check with your accountant or an accountant if you don't have one. Obviously if you do something wrong it can lead to problems. Cheaper to seek professional advice now rather than later.
 
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