La distribution of shares in an LLC consists in dividing the share capital of the company into equal parts, then distributing them among the partners according to their contributions.
When creating a limited liability company, the partners must build up share capital by contribution in cash and/or in kind. This share capital will then be divided into a certain number of shares which will be distributed among the partners. Here is how to distribute the shares of an LLC between its partners.
La distribution of shares in an LLC consists of dividing the share capital of the company into equal shares and then distributing them among the partners according to their contributions.
As part of the constitution of a limited liability company, the partners must provide share capital by means of contributions in cash and/or contributions in kind. This share capital will then be divided into a certain number of shares which will be distributed among the partners. Here is how to distribute the shares of an LLC between its partners.
Guarantee an appropriate number of shares for distribution
It is recommended guarantee an appropriate and harmonious number of shares so that their distribution among the partners of the SARL is easy and so as not to hinder the future development of the company.
For example, if a SARL composed of 3 partners has a share capital of 1200 euros divided into 10 shares of 120 euros each, the distribution of securities between the partners will be complicated because it is impossible to have 3 partners with the same percentage. of detention. In this configuration, it would be preferable to divide the share capital into 300 shares with a nominal value of 4 euros each.
Before splitting the share capital of the company into shares, it is important to take stock of the percentage holdings desired by each partner of the company. At the same time, it is also necessary to have a sufficient number of shares to facilitate transfers and the integration of new partners.
Distribution of shares between the members of the SARL
Le capital of a SARL must be divided into equal shares to be purchased in full by the partners. The allocation of shares between the partners is made according to their financial contributions (contributions in cash and contributions in kind).
The Commercial Code requires that the distribution of shares between partners be mentioned in the statutes of the LLC. This obligation also applies to shares created in the event of a contribution in industry, even if they do not participate in the formation of the share capital.
Finally, in the event of a contribution of joint assets, the spouse of the contributing partner may, under certain conditions, become a member for half of the shares issued in compensation for this contribution.
Distribution of shares in the statutes of the SARL
It is necessary that the distribution of shares between the partners is mentioned in the statutes of the LLC. Here is an example of a statutory clause relating to the distribution of shares between the partners:
Article of the statutes evoking the share capital and the distribution of shares
The share capital is set at the sum of (amount) euros.
It is divided into (number) shares of (nominal value) each, fully paid up (or paid up to (percentage)), subscribed in full by the partners and allocated to each of them in proportion to their respective contributions, namely :
to M (to be completed): (number) shares
to M (to be completed): (number) shares
to M (to be completed): (number) shares
… (as many lines as needed)Total shares forming the share capital (number) shares.
The undersigned expressly declare that these shares have been distributed among them in the proportion indicated above.
