Company query

[Blackhorse B]

Hi,

in a private company limited by shares what responsibility does the shareholders have to the company as opposed to the directors?
and how does an individual release themselves of unwanted shares?

 

[jpd]

In general, shareholders are only liable up to the nominal value of the shares. If the shares fully paid up, in which case the holder has no further liability. However as it is a private company, you need to check the Articles and Memorandum of Association.

Usually, these will also deal with how to dispose of the shares - they would not normally be freely transferable to a third party.