Share capital and reserves
A company is owned through shares. See how share capital, share premium and retained earnings make up its equity.
Task 1A company is a person in law3 questions
Kestrel Cycles Ltd is a bike shop run as a limited company. In law the company is a person of its own, separate from the people who own it.
- Shareholders
- the owners: each holds a number of shares
- Directors
- the people who run the company day to day
- Limited liability
- a shareholder can lose what they paid for their shares, and no more
In a small company the same people are often both. Priya Nair and Tom Hale own all of Kestrel's shares and are its two directors.
Task 2Issuing shares3 questions
Task 3Reserves3 questions