My Rights With My Shares

Discussion in 'Legal Issues' started by Matt Ellis, May 28, 2009.

  1. #1
    Hello there,

    I need some honest advice from someone who knows whats what here, so already, I thank you in advance.

    I own 20% of a business (£50,000 worth) which was incorporated as a Private Limited Company By Shares (LTD) in April 09 with Share Capital of £250,000 split on a 40/20/20 basis, myself owning one of the 20% shares.

    Now, I am just wondering what legal rights I have with my shares such as:

    -Can I sell them when I want?
    -How much of them can I sell?
    -Who can I sell them to?
    -Can I 'give' someone some shares for free?

    Its just I heard from somewhere that as a shareholder, I am only allowed to sell 10% after one year, 20% after 2 years etc. meaning I couldnt sell all 100% until after 10 years.

    Thanks for any advice, greatly appreciated.
     
    Matt Ellis, May 28, 2009 IP
  2. janecompersnews

    janecompersnews Well-Known Member

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    #2
    Not all company rights are the same.

    What documentation did you get when you purchased the shares? It should all be in there. Aside from that, the Memorandum and Articles of Association of the Company will define your rights as shareholder.
     
    janecompersnews, May 29, 2009 IP