Example of Common Shares and Share Capital

NOTE 24 - SHARE CAPITAL

The proposed amount of capital stock of J&B shall consist of:

AUTHORIZED:

1.   100,000 Class A Common Voting with a par value of $1.00 each

2.   Unlimited number of Classes "B", "C", and "D" Common Voting with a par value of $2,000 each

3.   Unlimited number of Classes "E", "F", and "G" Common non-voting with a par value of $1.00 each

4.   100,000 Class "A" non-cumulative, retractable, non-voting, preferred shares, par value of $1.00 each

The account balances shown on J&B's balance sheet are as follows;

YEAR 1 YEAR 2 YEAR 3

100 Class "A " Voting Common Shares $ 100 $ 100 $ 100
50 Class "B" Voting Common Shares $100,000 $100,000 $100,000

 

The Class "A" voting Common Shares represent the present shareholders and share holdings at the date of incorporation. Details are follows:

SHAREHOLDER SHARES HELD CERTIFICATE #

John Smith 85 Class "A" Common 01
Harry Jones 10 Class "A" Common 02
Barry Beck 5 Class "A" Common 03

 

Class "B" voting common shares represent 50 shares issued to future investors. The purchase of these shares will begin in January of 200W and end in April of 200W at the latest. The following share distribution schedule is forecasted by J&B.

SHARES SOLD MONTH AMOUNT
10 January $20,000
10 February $20,000
10 March $20,000
20 April $40,000

 

Categories: Samples and Examples