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11 December 2018 You are not logged in. Login now.

Changing Company Share Capital

changing company sharesRestructuring a company’s share capital can normally be done at any point during the life of the company. Subject to the memorandum and articles of association a company may change the number of shares issued, adjust the value, change the currency and even buy its own shares back.

Issuing more shares

A company can issue more shares with the same value and rights or it may choose to issue a new class of shares with a different value and different rights attached to each share.

Changing the Value of Shares.

It is possible to have shares as small as 1 penny or as large as you like (e.g. £1’000’000 shares). However, we suggest you seek advice before issuing high value shares as this ultimately changes your liability.

Changing the currency of shares

Whilst many UK registered companies typically have Great British Pounds GBP (£) shares it is not a legal requirement to have the shares recorded in GBP. You may choose to have a class of shares in Euros or US Dollars for example.

Company buy back of shares

A UK company can purchase its own shares back from shareholders. This may be done as part of a re-structuring process or as a tax efficient way of buying the shares of an existing shareholder. A company must maintain at least one shareholder in place.

Whatever your plans we can assist you in re-organising your share capital. We can prepare board resolutions, company minutes, Companies House forms and assist with the payment of stamp duty. Following a brief consultation we can offer suggestions on the best way to move forward for your circumstances.