Hi all -

I need some (I guess pretty basic) help with shares please.

Three of us founded a company a year ago with 100 shares, but only 3 allocated (one each). Each share was valued (and continues to be valued) at £1.00.

Some months ago, it seemed like a good idea to increase our holding to 20 shares each, so 19 more. We each wrote a personal cheque to the company to buy the original share and the 19 others. So, the company maintains a separate bank account currently with 3 * £20 = £60 in it.

My questions are this:

1/ do we each own 33 1/3% of the company (because only 60 shares were actually committed to people) or do we each own 20% of the Company?

2/ the thinking behind the 40% balance is that this could remain "in Treasury" should we get a new investor who wanted an equity stake in the Company. Does this make sense? Or should we just go ahead to allocate the balance of shares to ourselves?

3/ what documentation do I need to complete at Companies House to lodge with them that we have bought a further 19 shares each?

4/ for good practice, what documentation should I keep in the Minute Book to ensure that our local records reflect ownership of 60 shares now?

5/ back to point 2 - if we allocate the remaining 40 shares to us (well, likely 39 to make an equal allocation, leaving 1 alone) do we need some sort of agreement between the three of us now to sell a portion of our shares should a future investor wish to take an equity position?

Thanks for your help,
Chris

have you considered calling the business support line at 0845 600 9006?