Company shares and shareholders
Making changes to share capital
Companies can alter their share capital through a number of routes. You should consult your accountant or legal adviser to find the best route for you.
To notify Companies House of a reduction of capital, you must complete Companies House form SH19 Statement of Capital.
There is a fee to register a reduction in share capital. The fee varies depending on whether or not you want to register the change on the same day that you submit the documentation. The fee should be attached to the SH19 form.
All current fees are given on the relevant forms to be sent to Companies House.
Issuing shares to a new shareholder
A company can issue shares to a new shareholder by authorising the directors to allot shares. The authority can be in the articles or given by an ordinary or elective resolution. Allotment creates a right to be issued with the shares. Companies House form SH01 must be completed and returned within a month of the allotment of new shares.
Companies must notify Companies House of any new shares issued - they can do this by completing form SH01.
Changing the shares
A company can consolidate or subdivide its share capital if authorised to do so by the articles. Consolidation is when the shares are put together and then divided into shares of larger amounts, eg 200 shares of £1 are consolidated to create 100 shares of £2. Subdivision is when shares are divided into smaller amounts.
To consolidate or subdivide shares, a company must pass an ordinary resolution, then send the resolution and a completed form SH02 to Companies House within a month of the change.
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