Our business was set up with 2 directors, we only issued 2 shares at £1 each.
We have a new director who has come on board, he has invested £10k for a 4% share.
We therefore want to issue 98 new shares, issue him with 4 and issue the remaining new shares between the two current directors. A few questions:
1) Is this the correct way to do this?
2) Irrespective of the investment value should the share value still be £1 each share?
3) Do we need to do an allotment per person, or one allotment of 98 shares?
Issuing 98 new shares divided between the three shareholders would appear to work for your scenario.
The nominal value of the shares (in this case seemingly £1) is an arbitrary unit which doesn’t bear any reference to what the value of the shares might be (i.e. what someone will pay for them) and will remain the same unless the share capital is subdivided or consolidated.
You are alloting / issuing new shares to three shareholders, albeit the SH01 statement of capital form you are required to file at Companies House after the allotment will only show the increase in share capital (i.e. the total number of new shares issued and the total share capital after this).