Company Law Solutions offers expert help to companies looking to streamline their corporate structure through a consolidation of shares. A consolidation of shares is the process of merging a company's existing shares into a smaller number of shares, resulting in a higher nominal value per share. This can be done for a variety of reasons.
If you're looking to consolidate shares in your company, we can help you navigate the process. With our expertise, you can rest assured that the consolidation process will be taken care of just as you need it. We provide all the necessary documentation to ensure full compliance. Contact us today to see how we can help you with your share consolidation needs.
What Is A Consolidation of Shares?
A consolidation of shares is a process whereby a company reduces the number of shares in issue by combining multiple existing shares into one or more new shares. A consolidation does not affect the overall value of, or ownership percentage represented by, a shareholder's holding; instead, it 'concentrates' that value into fewer shares than it was represented by previously.
Why Would a Company Conduct A Consolidation of Shares?
A consolidation of shares process is useful in any situation where it is desirable to reduce the number of shares across which a company's asset value is spread. A company may simply have shares of too low a nominal value, and wish to consolidate them into fewer shares of a higher value (for example, turning 10,000 penny shares into 100 £1 shares) so as to make its capital look more realistic.
How Does a Consolidation of Shares Work?
Companies must follow the correct legal procedures, and prepare the correct paperwork to ensure that a consolidation of shares is carried out properly. After a consolidation takes place, the must ensure that all relevant documentation is updated (including share certificates, the company's register of members, and the filing history at Companies House).
The Company Law Solutions service provides everything required to be legally compliant, including:
- guidance as to the applicable procedures
- minutes of directors' meetings
- notices of shareholders' resolutions
- shareholders' consents to resolutions
- notices for Companies House
- completed official forms for Companies House
- our straightforward, step by step guide to completing the procedures
If required, we can supply new share certificates at a small extra cost.
|Subdivision or consolidation of shares||From £250.00 + VAT||Quote|
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