The owners of private limited companies are known as shareholders and each holds a certain number of shares in the business. This means you can set up a limited company yourself – you’d own 100% of all the shares – or with others, dividing the available shares between the shareholders.
How many directors can a Ltd company have?
A company can have as many corporate directors as it wishes, but there must be at least one natural director appointed at all times. Please be aware: corporate directors are technically outlawed following the introduction of The Small Business, Enterprise, and Employment Act 2015.
If you know the market cap of a company and you know its share price, then figuring out the number of outstanding shares is easy. Just take the market capitalization figure and divide it by the share price. The result is the number of shares on which the market capitalization number was based.
There is another simple way to view the list of shareholders of the company in the MCA website, which is as follows: Visit the site : www.mca.gov.in and click on the icon ‘MCA 21’ Login by clicking the login option on right side of the page.
A private company is normally restricted to issuing shares to its members, to staff and their families and to debenture holders. However, by private arrangement, the company may issue shares to anyone it chooses. Shares in a private limited company may only be sold or transferred with the permission of the directors.
When the company goes public, all the privately-held shares are converted to public ownership, and existing shares are assigned a new value equivalent to the public trading price. The original shareholders can choose to hold on to their shares when the company goes public or sell them to new investors for a profit.