Share Consolidation & Sub-Division
Occasionally it may be necessary to consolidate or sub-divide the share capital of your company. This means altering the number of shares in issue and their nominal value without changing the overall amount of share capital in issue. A consolidation will create fewer shares of a greater nominal value and a sub-division will create more shares of a smaller nominal value.
As the nominal value of a share is registered with Companies House when a company incorporates, a company will need to follow the procedure set out in section 618 of the Companies Act 2006 if it wishes to make any changes to the nominal value of its share capital.
This Share Consolidation & Sub-Division Sub-folder contains a guidance note and several supporting documents to assist you in this process.
Our guidance note is a practical guide to the share consolidation or sub-division process as well as looking at the reasons why a company may undertake this process.
The supporting documents consist of the procedural documents you will need in order to complete this process in accordance with the Companies Act 2006, namely a board minute, shareholders’ ordinary resolution and Companies House Form SH02.