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Get Started in Shares by Glen Arnold

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It’s easy to create shares

I have done it many times – create shares out of thin air, that is. Once a company is set up with its constitution (Articles of Association and Memorandum of Association – just a set of rules binding on the shareholders and directors) and been registered with Companies House down in Cardiff – a process that takes an hour or two of form filling, a few days for bureaucratic wheels to turn and a few dozen pounds – it is free to issue more shares if the existing shareholders approve of this.

Creating shares in a small company

In later years, the shareholders of a small company (who are usually also directors) simply need to call a ‘meeting’, say, while having a coffee, and agree to create more shares and issue these to ...

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