Can a company change its shares?
If authorised by its articles of association, a company may pass an ordinary resolution to:
consolidate and divide its share capital into shares of larger amounts than its existing shares, for example 200 shares of £1 may be consolidated and divided into 100 shares of £2;
sub-divide its shares, or any of them, into shares of smaller amounts, for example, a £1 share may be divided into 10 shares of 10p;
convert all or any of its paid-up shares into stock or re-convert stock into shares. A company cannot issue stock in the first instance. It can only convert issued shares into stock. (Converting shares into stock means treating them as one merged fund equivalent to the nominal value of the individual shares. For example, 100 shares of £1 each would convert to £100 stock.)
In all the above cases, the total authorised and issued share capital remains unaltered. Notice of the change must reach Companies House on Form 122 within one month. No fee is payable to Companies House.
BACK TO COMPANY REGISTRATION GUIDANCE
Source:
http://www.companieshouse.gov.uk/about/gbhtml/gba6.shtml#one
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