What is a Share?
A private limited company is a separate legal entity in its own right. It is owned by its shareholders. When an individual becomes a shareholder he becomes owner of the company.
The Shares represent the amount of ownership that a shareholder has in the company.
In return for investing into the company, the shareholder receives rights in the company such as the right to remove the director and the right to contribute to decision making by voting power.
When a company is incorporated in Singapore, a minimum of SGD 1.00 (or its equivalent in any currency) must be paid by the shareholder into the company to register the company in return for shares.
Want to know what is the share capital of a company? Check this article out!
