The purpose of issuing shares is to control ownership and voting rights for a company. Shares are issued (allotted) to shareholders from the company's share capital in the proportion that will reflect their individual voting and ownership rights. For example if a company has two shareholders each with 50 shares then they have equal voting and ownership rights. If one shareholder has 25 shares and another has 75 shares then the split will be 25% and 75% respectively.

It is important to note that not all the shares from the share capital have to be allotted to shareholders and it is common to reserve a certain number in the share capital that may be issued at a later date.

The controlling interest is held by a shareholder who owns more than 50% of the issued share capital. The individual with controlling interest will generally have the ability to cast the majority vote and dictate the outcome of an ordinary resolution (requires over 50% of the total votes).

A share certificate is a type of receipt provided to a shareholder on issue of a single or multiple shares. The certificate states the value and number of shares issued, the type of share (e.g. ordinary or preference) and the name and address of the recipient.

No. Although the purchase of shares can be a method of injecting capital into a new company it is not essential to pay for any issued shares in cash and they can be considered paid up at the point of issue.