{"id":7161,"date":"2022-02-14T16:27:22","date_gmt":"2022-02-14T08:27:22","guid":{"rendered":"http:\/\/www.biztreemgmt.com\/wordpress\/?p=7161"},"modified":"2022-09-21T22:27:55","modified_gmt":"2022-09-21T14:27:55","slug":"how-to-decide-number-of-company-share","status":"publish","type":"post","link":"http:\/\/www.biztreemgmt.com\/wordpress\/how-to-decide-number-of-company-share\/","title":{"rendered":"How to decide number of company share"},"content":{"rendered":"\n<p>How many shares should a newly registered company issue? Is common question for all business owner .<\/p>\n\n\n\n<p>Number of share represent total fund you willing to invest into Company .<\/p>\n\n\n\n<p>With effect from 2006, Companies Act had abolished par value of the share , which means that value of shares is varied and is decided and agreed between company and shareholder .<\/p>\n\n\n\n<p>Example : You can have 100 ordinary share with S$1 each  OR 100 ordinary share with S$10 each <\/p>\n\n\n\n<p>Company is required to registered with at least 1 ordinary share with minimum value of S$1. And this share will normally issue to founder of the company . ( it can be person or company ) <\/p>\n\n\n\n<p>For most companies, there won\u2019t be a maximum number of shares they can issue,unless its company constitution stated so.<\/p>\n\n\n\n<h2>How to decide number of shares <\/h2>\n\n\n\n<p>For newly registered company, Company constitution will stated number of share and its value . And this number will remain the same although there is changes at later time .<\/p>\n\n\n\n<p>You allowed to increase the number of share at any later time  with proper documentation.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<h2>Factor determine number of share <\/h2>\n\n\n\n<ul><li>type of share ( ordinary share, preference share, employee share scheme)<\/li><\/ul>\n\n\n\n<ul><li>size of the company (SME \/ MNC) <\/li><\/ul>\n\n\n\n<ul><li>number of shareholder  <\/li><\/ul>\n\n\n\n<ul><li>performance of company ( company might need more investment fund to complete its vision ) <\/li><\/ul>\n\n\n\n<ul><li>potential project ( need more fund to invest in machine\/ operating cost ) <\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h2>What is the alternative way  <\/h2>\n\n\n\n<p>Company may consider to get loan from the director \/ shareholder \/ related parties if they opt out increase in paid up option .<\/p>\n\n\n\n<p>Related Article : <\/p>\n\n\n\n<p>W<a href=\"http:\/\/www.biztreemgmt.com\/wordpress\/what-is-par-value-of-shares\/?preview_id=6368&amp;preview_nonce=0f2790d85e&amp;preview=true\">hat is par value of share <\/a><\/p>\n\n\n\n<p><a href=\"http:\/\/www.biztreemgmt.com\/wordpress\/what-is-shareholder-right\/?preview_id=5633&amp;preview_nonce=7a466bda04&amp;preview=true\">What is shareholder right <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>How many shares should a newly registered company issue? Is common question for all business owner . Number of share represent total fund you willing to invest into Company . With effect from 2006, Companies Act had abolished par value of the share , which means that value of shares is varied and is decided<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[165],"tags":[438,389,435,434,437],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HOW TO DECIDE NUMBER OF COMPANY SHARE ?<\/title>\n<meta name=\"description\" content=\"Number of share represent total fund you willing to invest into Company . 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