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UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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We have a LTD Uk company with 100 x £1 ordinary share between

Customer Question

We have a LTD Uk company with 100 x £1 ordinary share between 3 directors. We have an investor wanting to invest £500,000 in the company and become a shareholder. Do we need to change the price of all the 100 share to reflect his investment? Does this mean that each director would then have to invest additional amounts? thanks
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.

You do not need to do anything about the existing 100 shares and the directors do not need to invest more money unless they want to.

The new investor may be allotted shares in the company at a premium e.g. he may be issued with 100 shares of nominal value £1 at a premium of £4,999 per share. If this is done, then the total issued shares will be 200 shares and the new investor will hold 50% of the shareholding and the other 3 directors will hold the other 50% amongst them.

See here how to do so:

Hope this helps