The members must agree to take some, or all, of the shares when the company is registered. The memorandum of association must show the names of the people who have agreed to take shares and the number of shares each will take. These people are called the subscribers.
There is a minimum share capital for public limited companies: Before it can start business, it must have allotted shares to the value of at least £50,000. A quarter of them, £12,500, must be paid up. Each allotted share must be paid up to at least one quarter of its nominal value together with the whole of any premium.
A company can increase its authorised share capital by passing an ordinary resolution (unless its articles of association require a special or extraordinary resolution). A copy of the resolution – and notice of the increase on Form 123 – must reach Companies House within 15 days of being passed. No fee is payable to Companies House.
A company can decrease its authorised share capital by passing an ordinary resolution to cancel shares which have not been taken or agreed to be taken by any person. Notice of the cancellation, on Form 122, must reach Companies House within one month. No fee is payable to Companies House.
Read more about this topic: Public Limited Company
Other articles related to "share capital, capital, shares":
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... It received NOK 7.18 million in increased share capital and 21 new owners, including increased share capital from Bømlo, Kvinnherad and Tysnes ... The board had attempted to raise capital by marketing the airport as a "people's airport" and hoping that many locals would purchase shares, but the attempts failed ... The airport cost NOK 17.2 million as the company had NOK 17.9 million in share capital at the time, it was debt-free ...
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