Should you decide to form a limited company (guaranteed by shares), you’ll need to nominate shareholders and directors, decide how many shares to allocate, and how much share capital to put in at the beginning.
Companies are managed by directors and owned by shareholders (also referred to as ‘members’). You can be a director and a shareholder.
Shares are issued (or allotted) to shareholders to ultimately define their liability should the company fold, and at least one share must be issued from the outset – although variations can be made later down the line.
Normally, ‘ordinary shares’ are issued by small companies, which will have full rights to dividends, voting at meetings and entitlement to capital should the company fold.
However, the company could also issue ‘preference shares’, which have a fixed right to dividends and no voting rights