A company's shares must have a 'nominal' value which, in most companies, is £1. The nominal value of a share might bear absolutely no relation to its market value – for example, a company that has just one £1 share in issue, but which has established a successful business, may well have a market value of thousands of pounds. All of that market value will be concentrated in the single share.
This can create problems. For example, if the shareholder wanted to sell part of their holding, they wouldn’t be able to because shares must be transferred in full. This is where a subdivision can be helpful. The share can be divided into ten 10p shares, or one hundred 1p shares, enabling a proportion of the overall shareholding to be transferred.
On the other hand, a company may have shares of too low a nominal value and wish to consolidate them into fewer shares of a higher value (for example, 10,000 penny shares into 100 £1 shares).
Consolidations and subdivisions of shares are also often performed as part of larger transactions involving (for example) transfers or reductions of share capital – we offer special combined prices where this is the case.
Whatever the reason for doing so, our service makes it quick and easy to consolidate or subdivide shares in full compliance with all statutory requirements.
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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