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When setting up a Limited Company, be careful when issuing Company shares

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for most small companies one

person-to-person companies if they want

to form if the directors want to form

the company themselves they really only

need to issue themselves with say a

hundred one-pound shares anything more

than that is his is pointless really and

potentially dangerous we have had a few

clients come to us over the years where

for some reason they've just just gone

mad and issued themselves with 40,000

one-pound shares or a hundred thousand

or or in one case five hundred thousand

why that is dangerous is because in

paints you just created a loan you now

owe your company 40 thousand pounds for

the shares if you've issued them and not

paid them and there'd been no reason to

pay it if you're just a typical

small small company why it's dangerous


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