Nominal and premium share value

[roman]

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?

[MikeH]

This may not be the answer that you were looking for but..

You need to get some tax advice on this. You can sell your shares at any value you wish. The shares will have a nominal value and a market value. However if someone will pay whatever you are asking then fair play to you. There may be tax implications though that need to be considered.

You may also want to consider setting up different share clases. Non voting, dividend only, etc. This may avoid complications.

How will you buy shares back? Do you need a shareholders agreement?