Guidance Notes – share splits & reverse share splits
Guidance Note: Share Consolidation & Sub-Division
The consolidation & sub-division of share capital is the means by which a company may consolidate or sub-divide all or any part of its share capital in accordance with section 618 of the Companies Act 2006. This Guidance Note is a practical guide to what the process is, why companies often choose to do it and how to achieve it.
Shares must have a monetary value attached to them; this is known as the par or nominal value. Companies however will sometimes wish to increase or decrease the nominal value of the shares without changing the overall amount of share capital in issue. This is called consolidation or sub-division of share capital. This guidance note will take you through this process and .has been written in conjunction with our share consolidation & sub-division board minute and shareholders’ ordinary resolution.
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