Ltd company - STBX has one share?

My stbx has requested copies of my Ltd company papers. I was a sole trader and only recently went Ltd co as I had hoped to expand and take on staff. The business only started trading end of Sept and to date only £400 has passed through company accounts. I am the director and secretary but only one share was issued - to my husband. Can anyone tell me what this means for me? should i issue the remaining shares? does that mean i have to run all business decisions past him as the sole shareholder? Should i have issued myself a share in the beginning? I need to make a decision soon as it may be easier to close down this business and begin trading under a different name if it is going to get difficult.

Hi Getting Stronger,
I am no expert on this, but if only one share was issued, then technically that shareholder owns the company and no further shares can be issued without the agreement of the majority of shareholders. The same thing happened to me with my ex owning 50% shares (for tax reasons) in my limited company. When the divorce got bitter she refused to cooperate with me (director) or the bank. In the end the bank froze all the companies bank accounts and the company was unable to trade. However i had the hindsight to register a new company beforehand and started a new company with my parents owning 100% shares until the divorce finances were resolved.I kept the same company name, but just added (2007)
Hope this helps a little
David

Im no expert either (which is not great considering I was my husband's Co Secretary!!) However, I think the above sounds about right, Im not sure why you created only one share?? Are you sure your Articles of Association state only one share. Like I say am no expert but a company having only one share issue to your STBX is not good. You are best to creat more shares that required and sort of have some that can be dished out in future .. I think. Try Companies House website for info.

Sorry ive re-read your original post. Right you say there are more shares I think so if that is the case, you do need to asign more than one to yourself to be a majority shareholder (no idea how) But in any event I wouldnt like fact my STBX held any shares. So at this early trading point I would have thought it more prudent to start a new Ltd Co. ??? Thats just my unlearned opinion however!

thanks for your replies. The articles state the company has 100 shares of £1 each, and i gave my husb 1 thinking I automatically got the other 99. However the articles only list him as a shareholder (he told me how to set all this up through Co House incidentally)Good advice noted - don't think it would bother me if he had 1% share so long as I had 99% but maybe that's because i have no idea what the consequences are of that??

Hi, Getting Stronger

Just read your last post regarding your position. If the company becomes profitable in the future, you may start to pay yourself in dividends rather than take a large salary.(which is the most tax efficient way at the moment). You will always have to pay your stbx 1% of the dividends issued. (£10,000 = £100 - £100,000 = £1000). Also as a shareholder he would have the right to come to shareholders meetings, request copies of account etc. As i say i am not an expert, but i would begrudge paying my ex anything from my future hard work.
Just a thought, but i would agree with wasoangel and start up a new company and then anything you make is 100% yours.
Dave

Hello again Getting Stonger,

Right, in response to your reply. Like I say please note that this is only my understanding, having had brief dealings as a former Co Sec. I understand that as only one share has been issued, this means your husband (possibly) has 100% Company ownership!!

The other 99 shares are not allocated and therefore are classed as Authorised shares (ie belonging to company).

There is a share capital of £100 in your company, 100 @ £1.00 per share. Only one is issued so therefore that is 100% of the issued shares. The share value may be £1.00, but it still represents 100% of the issued shares. I hope that makes sense.

It is always best to leave some authorised shares in a company in case you want to, i.e. bring another share holder in or issue more etc in future. If you issued yourself 10 shares (I don’t know the allocation process mind) then as I understand it you would have a 90% share and your husband a 10% share).

However, as your husband is in control as the 100% share holder he may have objection to this, he is the company owner and you are just the person who is running it and making the decisions (cunning plan of his maybe??!!!)

I would have thought you really do need to sort this out asap.

If you have an accountant I would seek their advice!

Hope all goes well

Waso