Shareholder(s) of the company

Shareholders are investors in the company. They pay money into the company in return for shares. The number of shares they own determines the level of control they have over the company. For example, if a shareholder owns 750 shares out of a total of 1,000 company shares, that shareholder owns 75% of the company since each share represents a vote in the company.

Shareholders vote on the appointment of directors that manage (provide direction for) the company. Shareholders do not make decisions on running the company unless they are also directors. In small businesses it is common for the major shareholder to be the managing director of the company. Every company must have at least one director.

It is quite common practice to start with 100 (evenly divisible between 2, 4 and 5 shareholders) or 120 (evenly divisible between 2, 3, 4 and 6 shareholders) shares.

If a shareholder is an individual the following information must be supplied: full name, residential address, number of shares.

If a shareholder is another company then the following information must be supplied: company name, number of shares, registered address.