Buying Company Shares
Shares represent a percentage of the company. Buying shares in a company enables you to buy the company outright or to purchase a percentage of the company.
The number of shares a company has will depend on how many shares were registered with Company House when forming the company. Some companies for example will only be owned with one share. This would be worth 100% of the company. Whereas others may have more, with many owners each owning a different percentage of the company.
You are able to buy or have shares gifted to you by an existing shareholder. Equally, the company can create new shares. However, if the company creates new shares this will reduce the percentage that the existing shareholders own. As the total number of shares must always equal 100%. Similar to a pizza, the more people that share the pizza, the smaller each slice has to be.
Buying shares in a company enables you to receive a relative proportion of the company’s overall profits.
What you can expect when instructing Attwells Solicitors
Buying a Business via Buying Share in a Company
As mentioned, buying shares in a company can enable you to buy the company outright. The existing shareholders can sell their shares as part of a takeover. The buyer, therefore, is typically in a good position to negotiate favourable terms. Our business law lawyers will be able to transfer assets as part of the share purchase, this includes the transferring of employees under the TUPE regulations, plus any transfer of property.
Reasons for Buying Company Shares
You may wish to buy shares in a company to maximise the amount you can earn from your savings. Dividends are typically paid annually. You can choose to take the cash paid or re-invest by buying more shares in the company. Buying shares in a company as mentioned also allows you to part or full ownership of the company. In addition, you have voting rights, therefore you will have a say over how the company operates and its strategic plans.
Buying Company Shares – Business Law Experts
Attwells Solicitors specialise in supporting medium-sized companies. Our fixed fees and transparent pricing allow for certainty over cost, while our team of business solicitors have the expertise required for you to successfully buy shares in a company, quick and effectively.
We are rated 4.7 on Feefo and ‘excellent’ on Review Solicitors. Many of the reviews comment and relate to our service promises, use of plain English language, good communication, and price transparency. You should expect one point of contact and communication your way.
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