Step 3 - Issuing Share Capital and Assigning it to Shareholders

We now have a share capital of 10,000 £1 ordinary A shares and 5,000 £1.50 ordinary B shares, but none of these shares are currently in issue. The ordinary A shares are going to be issued to the shareholders via a normal share issue and the ordinary B shares are going to be issued via a bonus issue.

  1. From the Company Secretarial main screen click on Edit | Share Register

  2. Highlight Ordinary A shares.

  3. Click on Events. Click New followed by Share Issue.

  4. Type 10000 in the Number of shares field.

  5. In the Issued On field type 01/01/2003.

  6. In the Payable per share field type 2.

  7. The Description field should be automatically be filled out once the field has been clicked into.

  8. Click OK.

The Take up of Share Issue screen will appear, this is where the shares are assigned to the shareholders.

  1. Make sure the button box is selected for IRIS Client and click the magnifying glass.

  2. Highlight Mr Charles Smith from the list and click Select.

  3. In the Number of Shares field put 5000.

  4. In the Total Paid field type 10000. Or press F2 for the whole amount to be automatically entered.

  5. In the Date Paid field type 02/01/2003. (Pressing F2 will enter the same date as the issue date).

  6. Click Post. The New Member screen will appear, these 5,000 shares are going to be jointly held with his wife who is not a director.

  7. Select Other Shareholder and click the magnifying glass. Click New.

  8. Select Person and enter the following details:

Surname: Smith

Forename: Linda

Title: Mrs

Address:      1 Burnham Lane

Nr The Village Green

Town:          Doomsbury

 County:       Wiltshire

Postcode:     WS12 2XZ.

  1. Click OK, then Select.

  2. Back to the New Member screen click OK.

  3. The Take up of Share Issue screen will display again.

  4. Now we will enter Mr Churchill's shares. Make sure that IRIS Client is selected.

  5. Click the magnifying glass and select Mr Churchill from the list.

  6. Enter 3000 in the Number of Shares.

  7. Enter 6000 in the Total Paid field.

  8. Enter 02/01/2003 in the Date Paid field.

  9. Click Post and then OK.

  10. The final 2000 shares are going to be allocated to a shareholder who is not a director. Put the dot in Other Shareholder and click the magnifying glass.

  11. Click New and select Person.

  12. Enter the following details:

Surname: Warren

Forename: Darren

Title: Mr

Address:      3 Burnham Lane

Nr The Village Green

Town:          Doomsbury

 County:       Wiltshire

Postcode:     WS12 2XZ.

  1. Click OK and Select.

  2. Enter 2000 in the Number of Shares field Or F2 to select the remainder of the unissued shares.

  3. Enter 4000 in the Total Paid field.

  4. Enter 02/01/2003 in the Date Paid field.

  5. Click Post then OK.

The Take up of Share Issue screen should now say This Issue is Now Complete in the bottom left hand corner.

  1. Click Close, then OK then Close.

Now we will issue the Bonus Shares.

  1. Go to Edit | Share Register and from the Events tab click New | Bonus Issue. The New Bonus Issue screen displays.

  2. In the For Each field type 2 (they are going to get 1 bonus share for every 2 Ordinary A shares they own)

  3. In the first Share(s) of Type field make sure that Ordinary A is selected.

  4. In the Held On field type 02/01/2003.

  5. Type 1 in the Issue field.  

  6. In the second Share(s) of Type field click the down arrow and select Ordinary B.

  7. In the On field enter 03/01/2003.

  8. The Description will automatically display click OK.

  9. A screen displays prompting 'Do you wish to make all implied share transactions now?',  click Yes and the correct amount of bonus shares will automatically be assigned to each shareholder. Click OK to the transactions Generated screen. Click Close.

All the shares have now been issued and assigned to the correct shareholders.

Click here to go on to Step 4.