How to allocate shares in a Ltd company...?

Question

Can anyone explain the process of allocating shares in a a Ltd company and how these are 'created'. I own a Ltd co and there is one 'ordinary' share which as sole shareholder I own. If I wanted to sell say 10% of my company, how would I go about creating the shares to sell? How many would I create?

Thanks for the answers...I can ask my accountant to help me to do the transaction etc but I just wanted to know the principles behind the system...

Thank you Colin M....just on the offchance that you will re-read....but if a person is sold say 2 shares and say 10 exist then they can be said to own 20% of the business...if the board decides to create another 10, totalling 20 does that not mean that the person with 2 now owns just 10% of the business?? what is it that I am getting wrong here? Thanks

Answer 1

Basically the "board" make a resolution to issue shares, and how many or how much stock in the company to sell. As long as that's within the powers of the board as defined in the company's Memorandum & Articles, that's it. Eventually the investor is given a certificate showing what he/she holds.

Answer 2

The first thing is to ask your spouse whether he agrees you to split the share into pieces and pieces. One more boss will make you more complicated in daily operation.
In case of all questionable being solved, you should appoint an accountant or lawyer to help you in registering of the share and the transfer. The procedure is simple and easy, just stamp on the back of share certificate and write down the allocation, the professor will help you to register.
But, please reveal why you establish the company in one shareholder only? There must have an important point on your side!

Answer 3

Ask your Accountants -- now whould be a good time since they should be closing your books for the end of tax year 06/07.