ABSTRACT
Where a company is limited by shares, the capital of the company is divided into shares. These are units of a given amount defining a shareholder’s proportionate interest in the company. The nature of a share was discussed in Borland’s Trustee v Steel Bros & Co Ltd (1901) where Farwell J said:
A share falls into the category of incorporeal (intangible) moveable (not land or anything permanently attached to land) property in Scotland. In England, it is referred to as personal property. Under s 186 of the Companies Act 1985, in Scotland, a share certificate issued under the company’s seal is sufficient evidence of title (ownership) to the shares referred to unless the contrary is shown.
