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Converting Ord shares to Alphabet shares

Company incorporated 2004

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Company set up in 2004 (Table A Articles) with share capital of £1,000 (1,000 Ord shares £1each). Authorised share capital is £100 of 100 Ord £1 shares split 80:20 between husband and wife.  They now want ownership to be 50:50 but to pay different dividends to each as one person higher rate taxpayer. I think its ok, from a tax point of view, to transfer Ord shares into A and B shares 50:50 with full voting rights etc attached to each, but dont quite understand the process in respect of what forms need to be filed at companies house and what resolutions, if any, need to be passed?

 

 

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By johngroganjga
05th Sep 2019 12:11

The hard bit is redrafting the Articles to accommodate the new classes of shares, which if you are an accountant you should not touch.

You obviously need to deal with the transfer of 30 shares from the husband to the wife before doing the re-designation.

Re-designation is the proper name for what you call the old shares' "transfer into" the new shares. Using the proper name will help you to find the correct Companies House form to report it.

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