Skip to main content
Become a member
  • Register
  • Login

Register Login



Share issues by private companies

16 Apr 2019

Private companies are prohibited by s.755 CA 2006 from issuing shares to the public, or any section of the public. ‘Any section of the public’ is widely interpreted and can apply to any group of people, however few. Even the company’s own shareholders are treated as a section of the public for this purpose.

There are some specific exemptions from s.755 CA 2006. Unless one of these applies, the company would only be allowed to issue shares to the public if it is converted into a PLC. It would then have to comply with all the regulatory requirements for a PLC, including a minimum paid-up share capital of £50,000.

This content is for members only.

Gain unlimited access to all of the resources and factsheets on by joining as a member.

IoD membership can help you reach your full potential through its various membership packages.

Are you ready to become part of the UK's most dynamic community for business leaders?

Find out more about IoD membership

Join now  Login

IoD Coronavirus Support Hub Call To Action

Do you know what you need to know?

Our training team are here to answer your professional development questions.

Call us:

020 7766 2601

Training team

IoD Professional Development Brochure

Knowledge, skills and mindset for a challenging world

IoD courses are designed to tackle the core competencies needed to thrive at board-level.

Download course brochure