6. Shares

2019 ◽  
pp. 149-180
Author(s):  
Derek French
Keyword(s):  
Public Companies ◽  
Share Capital ◽  
A Company ◽  
A Share

This chapter considers one way of becoming a shareholder of a company with a share capital: by taking shares from the company in exchange for a contribution of capital. The number and class of shares of the company that the member holds determines the extent of the member’s undertaking to contribute capital, and of entitlement to share in distributions and vote at meetings. Share allotment in exchange for a capital contribution is explained, and the need for public companies to have a minimum contributed capital is emphasised. The chapter also looks at possible remedies available to a person who has been induced to take an allotment of shares by a misrepresentation, including rescission of contract. Finally, it examines ways of altering a company’s share capital.

6. Shares

2021 ◽  
pp. 145-176
Author(s):  
Derek French
Keyword(s):  
Public Companies ◽  
Share Capital ◽  
A Company ◽  
A Share

This chapter considers one way of becoming a shareholder of a company with a share capital: by taking shares from the company in exchange for a contribution of capital. The number and class of shares of the company that the member holds determines the extent of the member’s undertaking to contribute capital, and of entitlement to share in distributions and vote at meetings. Share allotment in exchange for a capital contribution is explained, and the need for public companies to have a minimum contributed capital is emphasised. The chapter also looks at possible remedies available to a person who has been induced to take an allotment of shares by a misrepresentation, including rescission of contract. Finally, it examines ways of altering a company’s share capital.

6. Shares

2017 ◽  
Author(s):  
Derek French
Keyword(s):  
Financial Accounting ◽  
Public Companies ◽  
Share Capital ◽  
A Company ◽  
A Share

This chapter considers one way of becoming a shareholder of a company with a share capital: by taking shares from the company in exchange for a contribution of capital. The number and class of shares of the company that the member holds determines the extent of the member’s undertaking to contribute capital, and of entitlement to share in distributions and vote at meetings. Share allotment in exchange for a capital contribution is explained, and the need for public companies to have a minimum contributed capital is emphasised. The chapter also looks at possible remedies available to a person who has been induced to take an allotment of shares by a misrepresentation, including rescission of contract. Finally, it examines ways of altering a company’s share capital. The principles of financial accounting are briefly addressed in order to appreciate the subjects discussed.

6. Shares

2016 ◽  
Author(s):  
Derek French ◽  
Stephen W. Mayson ◽  
Christopher L. Ryan
Keyword(s):  
Financial Accounting ◽  
Public Companies ◽  
Share Capital ◽  
A Company ◽  
A Share

This chapter considers one way of becoming a shareholder of a company with a share capital: by taking shares from the company in exchange for a contribution of capital. The number and class of shares of the company that the member holds determines the extent of his or her undertaking to contribute capital, and of entitlement to share in distributions and vote at meetings. Share allotment in exchange for a capital contribution is explained, and the need for public companies to have a minimum contributed capital is emphasised. The chapter also looks at possible remedies available to a person who has been induced to take an allotment of shares by a misrepresentation, including rescission of contract. Finally, it examines ways of altering a company’s share capital. The principles of financial accounting are briefly addressed in order to appreciate the subjects discussed.

6. Shares

2018 ◽  
Author(s):  
Derek French
Keyword(s):  
Public Companies ◽  
Share Capital ◽  
A Company ◽  
A Share

This chapter considers one way of becoming a shareholder of a company with a share capital: by taking shares from the company in exchange for a contribution of capital. The number and class of shares of the company that the member holds determines the extent of the member’s undertaking to contribute capital, and of entitlement to share in distributions and vote at meetings. Share allotment in exchange for a capital contribution is explained, and the need for public companies to have a minimum contributed capital is emphasised. The chapter also looks at possible remedies available to a person who has been induced to take an allotment of shares by a misrepresentation, including rescission of contract. Finally, it examines ways of altering a company’s share capital.

16. Share capital

Company Law ◽  
2019 ◽  
pp. 427-461
Author(s):  
Lee Roach
Keyword(s):  
Capital Requirement ◽  
Private Companies ◽  
Share Capital ◽  
Public Company ◽  
A Company ◽  
A Share

This chapter assesses what share capital is. A share is an item of property that confers upon its holder rights as set out in the Companies Act 2006 (CA 2006) and the constitution. A public company must have an allotted share capital of at least £50,000, while private companies are not subject to a minimum share capital requirement. Who has the power to allot shares depends upon the type of company, the class of share being allotted, and how many other classes of shares the company has. However, shareholders generally have a right of pre-emption meaning that, when a company issues new shares, they have to first be offered to the existing shareholders. Meanwhile, a transfer of shares occurs where a shareholder sells or gifts his shares to another, while a transmission of shares usually occurs where shares pass from one person to another due to the operation of law.

9. Classes of shares and variation of class rights

2016 ◽  
Author(s):  
Alan Dignam ◽  
John Lowry
Keyword(s):  
European Union ◽  
General Nature ◽  
Share Capital ◽  
The Core ◽  
Legal Nature ◽  
Different Types ◽  
The Subject ◽  
Class Rights ◽  
A Company ◽  
A Share

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on the rights and liabilities of a shareholder which are the incident of the general nature of a share, as well as his particular rights and liabilities by virtue of owning a particular type or class of share. It first considers the legal nature of a shareholding and the different types of share capital and typical class rights of a shareholder, as well as the statutory procedure required of a company before it can effect a variation of shareholders’ class rights. Examples of classes of shares are then given, and preferential rights attached to preference shares are discussed. The chapter concludes by looking at European Union initiatives on shareholders’ rights.

7. Share capital

Company Law ◽  
2020 ◽  
pp. 115-143
Author(s):  
Alan Dignam ◽  
John Lowry
Keyword(s):  
Company Law ◽  
Financial Assistance ◽  
Public Companies ◽  
Share Capital ◽  
The Core ◽  
Public Company ◽  
Private And Public ◽  
The Subject ◽  
A Company

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter examines how company law governs maintenance of a company’s share capital, with emphasis on the distinction between private and public companies. It also discusses various ways in which shareholders might legally receive funds (‘distributions’) from the company, including issuance of shares and payment of shares in kind (that is, goods, property, or services rather than in cash). The relevance of the nominal value of shares issued to shareholders, the issue of paying dividends to shareholders, and disguised return of capital to shareholders are considered as well. The chapter also examines two other means of returning funds to shareholders, reduction of share capital and redemption or purchase by a company of its own shares, before concluding with an assessment of the prohibition and the exceptions concerning the issue of financial assistance for the acquisition of shares in a public company.

9. Classes of shares and variation of class rights

Company Law ◽  
2020 ◽  
pp. 164-176
Author(s):  
Alan Dignam ◽  
John Lowry
Keyword(s):  
European Union ◽  
General Nature ◽  
Share Capital ◽  
The Core ◽  
Legal Nature ◽  
Different Types ◽  
The Subject ◽  
Class Rights ◽  
A Company ◽  
A Share

Titles in the Core Text series take the reader straight to the heart of the subject, providing focused, concise, and reliable guides for students at all levels. This chapter focuses on the rights and liabilities of a shareholder which are the incident of the general nature of a share, as well as his particular rights and liabilities by virtue of owning a particular type or class of share. It first considers the legal nature of a shareholding and the different types of share capital and typical class rights of a shareholder, as well as the statutory procedure required of a company before it can effect a variation of shareholders’ class rights. Examples of classes of shares are then given, and preferential rights attached to preference shares are discussed. The chapter concludes by looking at European Union initiatives on shareholders’ rights.

17. The maintenance of capital

Company Law ◽  
2019 ◽  
pp. 462-497
Author(s):  
Lee Roach
Keyword(s):  
Financial Assistance ◽  
The Other ◽  
Capital Maintenance ◽  
Private Company ◽  
Public Companies ◽  
Share Capital ◽  
Other Hand ◽  
Limited Company ◽  
Stage Process ◽  
A Company

This chapter addresses what is known as the capital maintenance doctrine — a series of rules designed to protect the company's creditors by ensuring that capital is maintained and not returned to the company's members. Any limited company can reduce its share capital by passing a special resolution followed by court confirmation. A private company can reduce its share capital by passing a special resolution supported by a solvency statement. On the other hand, public companies are generally prohibited from providing financial assistance to others to acquire their shares. Meanwhile, a company can generally only pay a dividend out of distributable profits. The typical three-stage process for paying dividends is the directors recommend an amount to be distributed by way of dividend; the company declares the dividend by passing an ordinary resolution; and the dividend is paid out.

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