Inspired by a question received from a customer (thank you!) – in this post we answer the following “What is a limited company subscriber?” and “Can they be changed after a company has been formed?”.
First up – what is a subscriber?
Subscribers are simply the first shareholders of a limited company (shareholders being the owners of the company). The name comes from the fact that they have subscribed to the company’s memorandum and articles of association (the documents that set out how the company will be run).
Subscribers have no extra responsibilities over shareholders who have joined after the company has been formed.
Can subscribers be changed once a company has been formed?
No. Because subscribers are shareholders at incorporation, they can’t be changed. Even if the person transfers their shares and they’re no longer involved in the company – they will still be down as a subscriber (this does not mean anything – they no longer own the company or have any say in how it’s run). It’s for this reason that if you have formed a company with us and changed your company’s shareholding situation, whilst the shareholders will change, the subscribers will not.
Do you have any questions about subscribers, shareholder or shares? Leave a comment on this post and we’ll get back to you.
Keep an eye on our blog for more limited company hints, tips and advice.