Fully Paid, Partly Paid or Unpaid Shares - Guidance

Guidance Note: Fully Paid, Partly Paid & Unpaid Shares

CO.ITA.06

This Guidance Note: Fully Paid, Partly Paid and Unpaid Shares is a practical guide for directors, secretaries and administrators of private companies covering what it means for shares to be fully paid, partly paid or unpaid (nil paid).  

This Guidance Note includes a discussion of:

  • nominal value;
  • the differences between fully paid, partly paid and unpaid shares;
  • why partly paid (and unpaid) shares are used;
  • the potential problems with partly paid shares;
  • how the process of transferring shares differs if the shares are not fully paid; and
  • the procedure for getting rid of partly paid shares.

This Guidance Note is a useful starting point or ‘aide-memoire’ to a company secretary or administrator considering these often complex issues and particularly how the transfer mechanics differ depending on whether a share is fully paid or not and which stock transfer form must be used.

This Guidance Note is in open format.

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