Unpaid Share Capital

slick

Hi Guys,

Does anyone know whether there are any legal implications in respect of dividends declared on company shares issued 'not fully paid up'? Presumably, if the share certificate has been issued to the Director/Shareholder owing the Company, then I guess not? Also, could the shares be deemed as 'paid up' by accounting for the nominal share value through the Director's Loan Account in a personal Company or, do these actually have to be physically paid for? I've always assumed they must be physically paid for!

As always, any comments, references gratefully received. Thank you.