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

For most small one or two person Companies, the directors need only issue themselves with, say, a 100, £1 shares.

Anything more than that is potentially risky. It would be dangerous for someone to issue themselves with, say, 40,000 £1 shares because they have then created a £40,000 Company debt which must be repaid by shareholders if it goes into liquidation.

Fortunately, there is a way to correct this so long as the Company is making money and the balance sheet is positive.

Find out more about AMS Accountancy HERE!

AMS Accountancy Swindon and Wiltshire

AMS Accountancy Ltd

AMS Accountants in Swindon provide a complete accountancy service for small businesses in Wiltshire and a monthly accountancy service for contractors throughout the UK.

Delta 606, Welton Road, Swindon, SN5 7XF

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