We are preparing the accounts for a company and are strugling to reflect the shares situation. When the company was initially incorporated the company director issued one share with the nominal value per share £1000. When the Confirmation statement was due the company director, knowing that soon a second director will join the company and one share can not be divided between himself and the future new director, he declared in the first Confirmation statement that the company had 100 shares, and the nominal value per share is £1. Could you please advise how to reflect in the company second financial year the change in shares, the fact that total agregate nominal value of the 99 new shares issued together with the one issued initially is now £100. What will be the DRs and the CRs posting in this case.
Also in regards to how the director acted in this case are there any legal cosequences?
Any advise will be very appreciated. Thank you