Simple share allocations
When allocating shares for a small limited company it is best practice to keep matters as simple as possible. You should issue the minimum number of shares possible to achieve the percentage of ownership that the shareholders require. When registering a company shares are usually issued as £1 shares. The following table will gives some examples on how to issue shares:
Complex share allocations
As Companies House and most formation agents use £1 shares it is not possible to implement complex shareholder apportionment. For instance where directors require shareholdings to decimal places (i.e. Shareholder A 26.5%, Shareholder B 26.25%, Shareholder C with 52.25%).
Most people setting up a limited company will never have to worry about this. However, if you have a requirement to allocate shares with complex fractions or you anticipate this will happen with your business in the future it is better to set your company up with a lower share value (i.e. £0.10 or £0.01 shares). TheCompanyWarehouse.co.uk can support this, you just need to give us a call on 0800 0828 727 if this is something that you need.