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Nominal and premium share value?

Me and my partner are founders of a Co. and are planning to purchase our Co. shares at nominal value. We are also planning on selling shares to non exec directors at nominal value of £1 per share. A month later we will look to sell shares at premium value of £50 per share. Legally, will we have to justify the rise in the price of shares?

Public Comments

1. If selling to 'Business Angels' or other individual (non-public) business investors, I would have thought that 'Caveat emptor' applies when it comes to share sales .. so long as you do not lie about whatever assets you are using to back the shares, you can demand whatever price you like (if business investors are willing to pay, that's their look out). NB. in UK, the buying and selling of shares to the public is Regulated by the FSA .. you will need to meet the relevant legal requirements.