I am filling the Memorandum of Association form, there is one column "shares", what do I have to write in that column. What does that mean. We are 2 Directors. I asked someone, he told me to write 5000 shares for both but I dont understand what does that mean. Please advice me and give as much as detail as you can... I am opening a Pvt Ltd company.
Thanks.
Hi Saurabh,
The number of shares in the shares column will depend upon the paid up capita of the company and share denomination. So if the company is being started with a capita of Rs. 1 Lakh with denomination of Rs. 10 shares then shares for two promoters would be 5000 (to be written in that column) each as 5000 * 10 * 2 = 100000
Thanks & Regards
Amit Mishra
CAclubindia
