Company Limited by Shares

Discussion in 'Growing and Managing a Business' started by Broobi, Nov 11, 2014.

  1. Broobi

    uix_expand uix_collapse
    New Member

    Nov 11, 2014
    Likes Received:
    Hi All

    I'm trying to understand the definition of Company Limited by Shares. Can someone take a look at my analogy below and tell me if I've got it understood correctly? Thanks!

    So a company ltd by shares, means that the company is 'run' by shareholders. And as such, has a specified 'share stake'. So... if I have a company with 3 shareholders only....


    Each person pays a share of £6000 each, (value of £1)... so share stake is £6000

    then each shareholder, is liable of Company Debt up-to £6000?

    So ..... lets say I'm starting a company.... i need £100,000 to do so......

    So I have three shareholders, each with a (paid in) share of:

    Person 1 (me) = £6000
    Person 2 = £6000
    Person 3 = £6000

    £18000 in total....

    then i find the other £82,000 from somewhere else (lets say a bank loan hypothetically)...

    Who is responsible for the £82,000 ... if not the shareholders?

Share This Page