Shareholders are the owners of a company, and their proportion of ownership, the shareholding, is significant. The names of the initial shareholders are recorded in Form 01. The board of directors decides the value of a share. Shareholders can invest through both cash and non-cash contributions.
While Form 01 records the initial shareholders, any later allotment of shares must be reported to the Registrar General of Companies using Form 06, within 20 working days of the issue date. The board of directors sets a fair value or consideration for the shares being offered, fair to both the company and its existing shareholders.
Shareholders receive a share certificate, signed on behalf of the company, as proof of ownership.
Stated capital
A company's stated capital is the total amount contributed by shareholders, or owed to the company by shareholders. It is calculated by multiplying the value of one share by the total number of shares issued, and it changes with new share issues and calls made on existing shares.