Home » Eng Finance » S » Shares (UK)

Shares (UK)

The owners of a company are its shareholders, that is, the people who have promised to subscribe a sum of money to the company’s capital in return for a portion of the profit. The share capital is divided into shares of, say, £1 each. These shares are transferable, freely in public companies though private companies normally restrict the right to transfer. Transfers are usually effected through a stockbroker. There is no limit to the number of shares an individual or organization can hold in a company. A company must have at least two shareholders. Each company keeps a share register, which members of the company may inspect. A copy is kept at the Companies Registration office and is available for inspection by members of the public. However, as shares are often held in the names of nominees, it is not always possible to ascertain true ownership this way, though, in the case of public companies, since the Companies Act 1981 any interest representing more than 5 per cent of any class of shares with unrestricted voting rights must be made known to the company and is recorded in a known to the company and is recorded in a could make known the names of nominees with substantial interests, as also could the provision in the Act that directors must disclose their true holding of shares including any held for them by nominees,

Reference: The Penguin Business Dictionary, 3rd edt.