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.
Register or log into AccountingWEB.co.uk to see the full article, which covers:
- 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.