Shareholder

Definiton

A shareholder is an individual or legal entity that owns one or more shares in a limited company. Shareholders contribute capital to the business and, in return, are entitled to a portion of the company’s profits, typically distributed as dividends. They also hold voting rights at shareholder meetings, usually in proportion to the number and class of shares they own, allowing them to influence key company decisions such as electing directors or approving structural changes.

Shareholders FAQs

Can one person be the only shareholder?

Yes, you can be the sole director and shareholder of your business.

What is share capital?

Share capital refers to the total nominal value of all shares a company has issued to its shareholders. It represents the amount of capital shareholders have committed to contribute to the company, either fully, partially, or not yet paid. Shares are typically issued at a nominal value, a fixed amount assigned to each share. They can be classified as paid, unpaid, or partly paid, depending on whether the shareholder has paid the full value of the shares at the time of issue.

Can shares be transferred?

Yes, shares in a limited company can be transferred from one person or entity to another using a stock transfer form. This form records the transaction details, including the names of the transferor and transferee, the number and class of shares, and the consideration paid (if any).

Once the transfer is complete, it must be recorded in the company’s statutory register of members, which serves as the official record of share ownership. Companies House does not need to be notified immediately of every share transfer. However, the changes must be reflected when filing the subsequent confirmation statement. If the share structure changes (e.g. new share classes or allotments), Companies House must be informed using the appropriate forms.