Sanity check

Sanity check

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When explaining to a foreign client that the shareholder's liability of a UK company is that of the nominal value plus any share premium that they have paid / are required to pay, I have been told that it is very surprising and not what happens in the rest of Europe. Surely in the event of the company going bust there is no right for the shareholder to get their premium back?

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Basset Hound
By Cuchulainn
03rd Aug 2012 14:52

No, there isn't.

Obviously, in a (solvent) liquidation the ordinary shareholders will receive between them whatever assets are left in the company after all other liabilities have been discharged. However, at that stage of the game it's academic whether or not premium is included in that amount.

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