Shares - explaining it so I understand!

System
System Posts: 100,534 🤖 Admin 🤖
edited 12:08PM in AAT member discussion
Can anyone explain:

Share Capital
Authorised
200000 Ordinary 'A' shares
200000 Ordinary 'B' shares
100000 Ordinary 'C' shares
100000 Ordinary 'D' shares
200000 Preference shares
200000 Deferred shares

Called up, allotted and fully paid
200 Ordinary 'A' shares
40 Ordinary 'C' shares

The company they relate to is a tiddly one.

Thank you!

:shock:

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Shares - explaining it so I understand!

    Hi there

    Without looking at the mem and arts I would guess that the ordinary shares have a different rate of dividend and maybe some have voting rights and others dont - maybe "owner" has A shares with say 50% divi and full voting rights, and then "staff" have B or C shares with no voting rights and maybe diddly divis.

    Preference shares are (I think - someone might correct me) for money that has been loaned to a company.

    In your example I would have thought that the "owner" has 200 A shares and someone else (employee?) has the 40 C shares.

    Does this help? Probably not actually, as I seem to have waffled!

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Shares - explaining it so I understand!

    I knew you'd reply first!

    The shares are 200 for one director and 40 for the other (wife).

    Thank you!

    :P

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Shares - explaining it so I understand!

    Thank you - just sounds as if they bought something really complicated off the shelf - the split sounds sensible!

    Bored to trying to look at alternative to PTP since they've been bought out - the thought of transferring all that data makes me weep :cry:

    Claudia
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Shares - explaining it so I understand!

    Hi Baggybooks

    That is quite right, it gives the director a controlling interest of 80% and his wife holding 20% (with I suspect no voting rights with the "C" class share)

    I'd agree with everything Claudia said expect Preference shares have the first right to dividend. Shareholders could be granted a Preference share beacuse they have put in a vast amount of cash into the company and they want first rights to their investment.

    The "Authorised Share Capital" is what the company "can" issue in shares. The "Called Up" share capital is what they have issued in shares.

    Regards

    Dean
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Shares - explaining it so I understand!

    Thanks both - the company has gone pop and I downloaded their accounts and that bit threw me.

    Dean - it's Baggybooks - although I have been known to Babble! :lol:

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Shares - explaining it so I understand!

    Doh, so much for my touch typing... fat fingers see :D I've now edited it :)

    Regards

    Dean

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