1.1 The Investment

All shares must be paid up in full, in cash, when they are issued.

They must be 'full-risk' ordinary shares, with no preferential rights to dividends, or to the company's assets in the event of a winding up. There must also be no arrangements to protect the investor from the normal risks associated with investing in shares, and no arrangements for the shares to be purchased by anyone else after the end of the relevant period.

Investment can be directly into the company, or through an EIS Fund. For more on EIS Funds, see 1.6.