One of the advantages of using a limited company as the vehicle for your business is that while the company owns all of the business, ownership of the company can be spread among as many people as you like. Most companies start with 100 shares of £1 each. Hence the expression “a hundred pound company”. That means the company has agreed, through its shareholders, to authorise 100 shares. You then decide who gets them. You [...]

Under the Companies Act 2006, private companies do not have to hold annual general meetings (AGMs), unless they are a ‘traded company’ or their articles require them to hold such meetings. However, directors of private companies still need to involve shareholders in the decision-making process of the company.  If necessary, a company may need to pass a resolution to remove any existing clauses about AGMs from its articles. Many decisions can now be made by written [...]

No one should go in to business blindfolded, so if you are forming a company with someone else then you need to agree a set of ground rules. Set up a shareholders’ agreement to protect each other’s interests. Download a comprehensive template agreement from Net Lawman. All the shareholder agreements lay out the terms of business for new or existing companies needing to protect shareholders against:  Lender warranties and borrowing money,  Consequences of [...]