Share Issue
From FairShares Wiki 3.x
A Share Issue involves the issue of Labour, User or Investor Shares only. Under the Companies Act 2006, the limits on issuing shares in the UK have been removed. Company Law in other countries may require a resolution to be passed in General Meeting to increase the 'stock' of shares that can be issued to new / existing members.
In the UK, a co-operative (IPS) will shortly (summer 2014) be able to issue shares at a par value of £100k to each member.
In a FairShares Enterprise:
- Labour Shares are issued to suppliers, producers, workers, employees and directors who make a qualifying contribution (agreed in General Meeting).
- User Shares are issued to customers and service users who make a qualifying contribution (agreed in General Meeting).
- Investor Shares are issued to Labour, User and Investor shareholders following the rules set out in the FairShares Articles of Association used by the enterprise.
The number of shares issued is reported each year to regulators. Records are available to all members during normal working hours.
Return to the FairShares Glossary.
