Changing Company Share Capital
Restructuring a company’s share capital can normally be done at any point during the life of the company. This often occurs when a new shareholder is added to the company, but the existing shareholders may also change share structure to provide greater flexibility or to reflect different rights for each shareholder.
Subject to the articles of association a company may change the number of shares issued, adjust the value, introduce different rights to each share, change the currency and even buy its own shares back.
Change Company Shares
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Changes to Share Services
We know that one solution does not fit all businesses. We can tailor make your share structure to suit your business. Adding new shares of changing the existing structure can provide greater flexibility for the shareholders.
Issuing more sharesCopy the existing shares or create new ones
Issuing more shares
A company can issue more shares with the same value and rights. Alternatively, it may choose to issue a new class of shares with a different value and different rights attached to each share for flexibility.
Changing the Value of SharesYou can increase or reduce the value of shares
Changing the Value of Shares
It is possible to have shares as small as 1 penny (£0.01) or as large as you like (e.g. £1,000,000 shares). However, we suggest you seek advice before issuing high value shares as this ultimately changes your liability.
Changing the currency of sharesShares can be any recognised currency
Changing the currency of shares
Whilst many UK registered companies typically have Great British Pounds GBP (£) shares it is not a legal requirement to have the shares recorded in GBP. You may choose to have a class of shares in Euros or US Dollars for example.
Company buy back of shares!
A UK company can purchase its own shares back from the shareholders. This may be done as part of a re-structuring process or as a tax efficient way of buying the shares of an existing shareholder. The existing shareholders may not want to purchase shares from the departing shareholder. Remember – a company must maintain at least one shareholder in place.
We can assist with the preparation of the correct paperwork for the company and the filing of required documents at Companies House. We are not able to advise on the tax implications so please speak to an accountant or tax adviser before instructing is to make changes to a company’s share structure.