Limited Companies in the UK are generally limited by shares representing the ownership of the Company. So if the Company issued 100 shares and you own 1 – you own 1% of the Company.  Shares come with certain rights, the most common type being an Ordinary share – which comes with 3 major rights:

  1. The right to vote in a shareholder/general meeting where 1 share equals 1 vote. If you own 51% of the issued shares, you have real power in the Company;
  2. The right to share in the winding up or sale of the Company where you are entitled to receive any money received in proportion to your shares.
  3. You have the right to receive profits from the Company in the form of dividends, so when there is a profit, the directors can vote for a dividend to be paid to the shareholders.