Guidance Note: Fully Paid, Partly Paid & Unpaid Shares

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.

Guidance Note: Fully Paid, Partly Paid & Unpaid Shares is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.