Decide on the share structure
The share structure includes the number and class of shares the company has issued and the amounts paid and unpaid on these shares.
A company must issue at least one share to one shareholder.
The share class distinguishes between the different rights that may be assigned to different shares. For example, some share classes give you the right to vote in company decisions or the right to receive a dividend. Most proprietary companies use 'Ordinary Shares'. There are no special rights attached to 'Ordinary Shares'. Our company constitution requires at least one shareholder to be allocated at least one ordinary share.
Total number of shares
This is the total number of shares, in each class, issued by the company. The number of shares the company issues represents the company's capital. The number and price of the shares will be determined by the amount of capital needed by the company. If you are unsure about the amount of capital your company needs, seek legal advice.
Total amount paid and unpaid
A shareholder (also known as a 'member') may pay the full amount when they purchase the shares, or they may only pay a portion. The amounts paid and unpaid must be included in the share structure.
Decide on your share class or classes, the number of shares and the dollar amount to be paid.