Issued Shares

Under the Companies Act 1985 shares may be issued by the company to shareholders in return for cash or other value equal to or greater than its nominal value. The authorised share capital shows the number and nominal value of shares that are available to be issued. The issued share capital refers to shares that have been allotted and issued and held by shareholders. Not all of the authorised share capital needs to be issued. When shares are issued the person subscribing must pay cash or equivalent value of at least the nominal amount. Where the share is worth more than its nominal amount the excess is treated as a share premium.