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Hi Mr John….Lets say the owner of the company wants to raise some finance and he can do this by turning company into Plc and issuing authorized shares to shareholders.
The question is the company’s is worth $100,000 and the owner got 120,000 by selling …It means now the company’s capital should consist of 100,000 capital and share capital of 100,000,share premium of 20,000 as the owner invests brought-in money into business not receiving it for personal use like resale…Is it right…
I can’t understand what’s the benefit for the owner if he sells all shares…After selling Will he be nobody in company?If it is already a company that he already has shares and will still have the shares.
If the company issues more shares then it is the company that gets the money – not the current owner.
He stays as a shareholder, but in now in a bigger company, and he still has his shares.
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