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Adding or removing a shareholder
Redistributing existing shares to reflect a change in ownership
Adding a new class of shares to issue shares with differing rights
Cancelling or changing existing shares
During the life of a UK company it is often necessary to change the share structure. Shareholders come and go, dividend payments may need to be flexible or the rights of shares may need adjusting.
When a company is formed shares are issued to the subscribing shareholders. These shares may be held for many years without being changed. Increasingly more companies are now restructuring the share allocation as the company grows. Changing the shares in a UK company can provide greater flexibility over profit distribution, ownership, voting rights and payment of dividends.
The share capital of a company can be increased by just a single penny or millions of pounds. To increase the share capital in a UK company you have to file form SH01 at Companies House.
Shares are transferred using a stock transfer form. HMRC must also be notified if shares are transferred for any value, monetary or otherwise, as you may be liable for stamp duty. Companies House are officially updated with the new shareholders when the next Confirmation Statement is filed.
Form SH01 can also be used to add or change existing share classes. Each share class has a unique set of voting rights attached to them so, for example, A class shares may have voting rights and full rights to dividends whereas B class shares may not have any voting rights but the shareholders are still entitled to dividends.
If permitted by the articles of association a company may be able to file form SH03 to 'buy back' the existing share capital effectively reducing the number of shares.
Finding and completing the correct forms to achieve the changes you want can be tedious and frustrating. Our knowledgeable team of advisors have a wealth of experience with share capital amendments and we will ensure we find the best approach to your suit your needs.
Most share changes are completed in one working day subject to the complexity and we will ensure all documents are correctly completed and duly filed. We can also draft meeting minutes and resolutions ready to be signed as well as creating share certificates where applicable.
Contact us today with your requirements and we will happy to provide an accurate quote for our services.
Please note Companies House processing times are an estimate only and not guaranteed.
Simple Formations is a trading name of Small Firms Services Limited. We have been trading since 1998 and are one of the UK's longest standing Company Formation Agents