Company Law Solutions provides a complete service for the creation and issue of new share classes in private companies. As your company grows and evolves, it's essential to have a flexible capital structure that can adapt to your changing needs. Our team of specialists can help you issue shares in new classes which meet your specific requirements while ensuring, if necessary, that existing investors' rights are protected.
Whether you need to create a new class of stock to raise capital or simply want to offer new share classes to employees, we're here to help. Contact our team today to learn more about our services and how we can assist you in optimizing your company's capital structure.
What Are New Share Classes?
A lot of companies will only ever have a single class of shares - ordinary shares - but many others will wish to issue shares which have different rights from others that are already in issue. Such variation in rights may (to take a few examples) apply to matters such as the voting power of the shares, or the rights to dividends and/or capital attaching to the shares. Because shares occupying the same class must all have the same rights attaching to them, any company which wishes to achieve such variation will need to do so by introducing different classes of shares.
Why Would A Company Issue New Share Classes?
There are numerous reasons why a company might wish to issue shares in different classes. A very common one is so as to enable the directors to declare different dividends on different classes (and indeed this often extends to creating a different class of share for each shareholder, so that dividends can in effect be varied between individual shareholdings). Similarly a company may wish to create non-voting shares, so that a shareholder can benefit from share ownership without having a say in how the company is run. Employees are often issued with shares which give the company the right to redeem them on the cessation of the individual's employment, but more broadly redeemable shares are useful in any circumstances where a company wishes to exercise control over the period of time a person owns shares in it. There are numerous other types of shares which can be created; the share class system is extremely flexible and so bespoke classes can be introduced to cater for virtually any requirement.
Challenges and Solutions in Introducing New Share Classes
Creating new share classes is not a simple task, and issuing shares in classes which have been created incorrectly, or where a deficient process was followed, can have potentially disastrous ramifications (often including highly undesirable tax consequences) for company and shareholder alike. A company should set out the classes of shares which it has the power to issue, and the rights attaching to those classes, in its articles of association; if the desired classes are not set out therein, the articles must be amended properly to include them. Very often, this will be done at the same time as issuing the new shares themselves, and it is that combined process to which the service described below refers.
We make it easy to introduce new classes of shares into your company by handling the process from start to finish – allowing you to get on with running your business.
The Company Law Solutions service provides everything required to be legally compliant, including:
- new articles of association
- minutes of directors' meetings
- notice of resolutions
- shareholders' consents to resolutions
- completed official forms for registration at Companies House
- our straightforward, step by step guide to completing the procedures
If the company is a ‘single person’ company, with just one director/shareholder, appropriate alternative documentation is provided.
Our standard charge for creating and issuing new share classes is £295 + VAT. However, because every company is different, we need to study the company’s filing history to ensure that there are no complicating factors. Please complete our quick quote form below and we will be in touch as soon as possible with a firm, no-obligation quote.
|Create new share classes||From £295.00 + VAT||Quote|
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