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Share capital / Sharesholders
Advantages of british companies
First advantage : share capital non libératoire
Capital can be raised with relative ease because investors can buy shares in the company. This does not mean, however, that a new company can simply offer shares to the public. Share offers are regulated by law.
Second advantage : responsabilité des actionnaires limitée au capital émis
Authorised share capital is normally £1000, made up of 100 shares, each with a nominal value of £1. In registering companies for France, however, it is normal to increase the share capital to circa £10.000 (circa 100.000FRF), made up of 100 shares.
The shareholders are not personally liable for the debts of the company. The company can only ask shareholders to pay for their shares in full. The shareholder's responsibility is limited to this amount and this amount is determined when the shareholder agrees to buy shares. Should the business fail, the creditors cannot obtain possession of the shareholder's assets, such as homes or cars, in settlement of debts. Limited liability is the most important reason why so many businesses are incorporated.
Third advantage :
Subject to the Articles of Association, shares can be transferred to the existing members and to the family members as gifts or otherwise. It is possible to sell your shares to other people, but not in a general offer to the public. Investors in a private company do not receive the same protection, as they would have if they were investing in companies listed on the Stock Exchange.
