Stupid company formation question

[VectraMan]

I created a company through a useless company formation agent who will rename nameless. The company is incorportated, and I have the certificate. They sent me two stock transfer forms to transfer two shares from each of their two companies to me, which (nearly 2 weeks later) I now have back stamped.

So I guess that's proof of me owning 2 shares. But according to the articles of association: "The share capital of the company is 1000GPB divided into 1000 ordinatry shares of 1 GPB each."

Which makes me wonder, who has the other 998 shares?

I'm sure I have entirely the wrong idea, but can anyone explain this to me?

[privateeye]

Probably your new company owns 998 shares (ie not issued) and you personally own 2 shares - so in a roundabout way you own it all. Mine was set up in a similar way - it should be recorded in the company register who owns what.

[VectraMan]

Thanks. Been doing some web searching and discovered the difference between issued shares and share capital. I just always assumed there were so many shares and somebody had to own them all.

The company formation people are also being company secretary for me (which I hope I don't live to regret), so I assume they keep the record. It would be nice to have a big shiny certificate showing me as owning 100% of the shares of Vectra Man Ltd. (not the real name).

I have to prove that I am the main shareholder to the bank to open an account, but all I can really prove is that I have two shares, so we'll see how that goes.

I'm probably the opposite of most people in that the accountancy stuff doesn't worry me, it's the legal company stuff that has me waking up screaming in the night. But I guess once it's done you can largely forget about it.