I have got a new client who has got ordinary shares & preferance shares.
Preferance shares does not have any preferancial rate of return. Basically what I understand from the convesation with the client is that, they wanted to have another class of ordinary shares, but have created preferance shares buy mistake 5 years back.
The preferance shares carry following rights: ALL SHARES HAVE EQUAL VOTING RIGHTS AND ARE NON-REDEEMABLE.
Can I advise them to convert the preferance shares into another class of ordinary shares(class B shares), so that we can have an alphabet share structure for the company(please note Preferance shares have not been set up as convertible preferance shares) as client does not want to have the preferance shares.
If we can convert as mentioned above, is there any HMRC guidelines should we take into account.