If a company only has 100 shares can I allocate someone 23.75 or does it have to be a whole amount?
There are currently only 2 shares issued and we need to include 3 more shareholders there is a split of 23.75 23.75 23.75 23. 75 and 5%
Can i split this by issuing a 100 or can I only transfer/ issue whole shares.
Replies (13)
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Why not increase the shares in issue by either subdivision or a bonus issue and then you could have 10,000 to split.
The smallest number of shares you need is 80. As you already have 100 the simplest way is to increase the number to the next multiple of 80, namely 160.
Perhaps only a further 78 shares are required - the question is unclear (I assume he means 2 shares issued out off 100 authorised but who knows)
I'm inferring that, of those 100 (I'm assuming here that the company is old enough to have an authorised capital), only two are issued, John.
I doubt it has an authorised share capital, I think it's lazy maths and OP is suggesting 100 because they already know the percentage they want and so issuing 100 in total lets you do the percentage split without working out fractions, if 3/4 of a share were allowed.
Just issue the 78 and do the 19/19/19/19/4 split.
For this reason I always issue 1200 shares for new companies as it divides by many more numbers than 100. Indeed, in this case 23.75% would be 285 shares exactly.
I would opt for simplicities sake Nicola's suggestion of subdivision.
Changing 100 £1 share to 2000 5p shares does not involve any increase in share capital, nor any dilution in share holding complications