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What is Share capital?

May 15, 2014

The Share Capital is the total number of shares the company has issued to its shareholders. Shares issued when setting up a limited company are typically £1. If more than one share is issued, it will determine who controls the company. For example, 2 shares to 2 shareholders means the company is equally controlled with each party owing 50% of the company. If two shareholders respectively owned 2 shares and 3 shares, then the divide would be 40%/60%, making shareholder number 2 a majority shareholder.

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Karen Horne
@UK_Co_Formation

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