Sometimes companies will want to issue shares that are not Fully Paid. They can be:
-Nil Paid; or
-Partly Paid
Inform Direct will support either of the above.
Nil Paid Shares
As the name suggests, none of the capital for a Nil Paid share is paid by the shareholder at the time the shares are allotted. However, the shareholder (or subsequent owner if they are ever transferred) will have an obligation to pay the unpaid capital amount to the Company at same date in the future.
In the above example, 100 shares are being allotted. From the drop down menu Nil Paid has been selected.
Note: The Amount unpaid per share on allotment is £1.00. It cannot be less than £1.00 but could be more. If it was more there would be a Share premium per share. As the amount unpaid is exactly the same as the nominal value of the share the Share premium per share is £0.00.
Partly Paid Shares
As the name suggests, some of the capital for a Partly Paid share is paid by the shareholder at the time the shares are allotted. So, while the shareholder will have paid some money to the company (but not the full nominal amount) they (or any subsequent owner if they are ever transferred) will have an obligation to pay the remaining unpaid capital amount to the Company at same date in the future.
In the above example the share class is £1.00 ordinary shares. 100 shares are being allotted. From the drop down menu Partly paid has been selected. There are two elements to this:
1. The Amount paid per share on allotment
Here it is £0.30 per share. If you enter a figure greater than the nominal value (Here £1.00) then the surplus will be added to the Share premium per share calculation. Inform Direct will calculate the Total consideration paid on allotment. Here 100 x £0.30 = £30. This is how much the company receives as the shares are allotted.
2. The Amount unpaid per share on allotment
Here it is £2.20 per share. This is the additional amount the company can expect to receive at some date in the future. As you enter the amount unpaid per share then Inform Direct will calculate the Total amount unpaid on allotment and vice versa.
Inform Direct will then calculate the Total consideration ultimately payable. Here (100 x £0.30) + (100 x £2.20) = £250. Inform Direct will also calculate the Share premium per share (if any). Here £1.50