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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