What are the authorised shares?
This is the number of shares your initially authorise your company to issue to shareholders/subscribers. Usually a share issue of 1000 with each share valued at £1 is used.
It is worth noting that although you authorise 1000 shares, if only 1 share is issued to one person, that person becomes 100% shareholder in the business.
How do I issue more shares?
If you wish to issue further shares up to the authorised share capital form 88(2) should be completed and sent to the Registrar of Companies.
You can increase your authorised share capital by passing an ordinary resolution at a general meeting. A copy of the resolution and Form 123 detailing the proposed increase must then reach Companies House within 15 days of being passed.
