Share reorganisation: Get the details right

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Companies often need to adjust their shareholdings and capital structures to cope with a variety of situations. Jennifer Adams provides step-by-step guidance on the main procedures.

Most private companies start their lives by issuing a nominal number of shares of a nominal value. As firms grow and evolve, the number of shares may need to be increased or even reduced a number of reasons. There are set procedures that need to be followed.

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  • Reasons for increase
  • Bonus share issuing procedure
  • Reasons for a reduction
  • Reducing share capital procedure - to include preparation of an insolvency statement
  • Companies House requirements
  • HMRC's view
  • Final points

Jennifer Adams FCIS TEP ATT (Fellow) is Associate Editor at AccountingWEB. A professional business author specialising in corporate governance and taxation, she has written for many of the leading specialist providers of legal, tax and regulatory publications. Jennifer runs her own accounting and consultancy business with offices based in Surrey and Dorset.


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26th Jul 2012 11:44

tax implications

it would have been nice to go on more about issuing new shares or redistributing shares either to new or existing shareholders an put this in context with personal and corporation tax, cover various classes etc

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27th Jul 2012 09:31

Share Restructuring

Thank you for the article. What are the procedures for issuing more shares than originally authorised and the procedure for issuing a new class of share?


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30th Jul 2012 13:07

Can a Director change the shareholding...

...without the agreement of all the shareholders?

In this situation, the Director is not a shareholder. There are just 2 shareholders each with 50%, who are not Directors.

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