When a company is formed in the Abu Dhabi Global Market (ADGM), the incorporating shareholders subscribe for shares in the company being formed. These initial shares in the company can be issued as paid, unpaid or partly paid shares.
Paid shares are those that have been fully paid for by the shareholder. This means that the par value of the shares has been paid by the shareholder to the company. A shareholder will not be liable to make any further payments in relation to these shares.
Unpaid shares are shares which have been issued but have not yet been paid for by the shareholder. The shareholder remains liable to pay the par value of the shares to the company at a later date. For example, the company may decide to request all shareholders to pay amounts owed on unpaid shares and a shareholder would risk losing those shares if they fail to pay unpaid amounts.
Once the company is formed, any further shares issued can only be issued as paid shares.