Share Consolidation & Sub-Division Templates

Sometimes a company may need to consolidate or sub-divide its share capital. This alters the number of shares in issue and their nominal value, without changing the total amount of share capital.

A consolidation creates fewer shares with a higher nominal value.
A sub-division creates more shares with a lower nominal value.

Because the nominal value of a share is registered at Companies House, any change to that nominal value must follow the procedure in section 618 of the Companies Act 2006.

This section brings together a practical guidance note and the core board, shareholder and Companies House templates needed to implement a share consolidation or sub-division.

When to Use These Templates

Best for:

Increasing or decreasing the number of shares while keeping total share capital the same.
Bringing nominal values into line with market practice or simplifying the share structure.
Preparing for an investment, reorganisation or buyback where the number or value of shares needs to be adjusted.

What This Section Covers

A practical guide to why and how a company might consolidate or sub-divide its shares.
Board minutes recording the directors’ decision to proceed and to recommend the change to shareholders.
A shareholders’ ordinary resolution approving the consolidation or sub-division.
Companies House form SH02 to record the consolidation or sub-division of shares

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All Making Changes to Share Capital