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.

Par value and what consolidation or sub-division changes

Shares must have a monetary value attached to them; this is known as the par or nominal value.

Companies will sometimes wish to increase or decrease the nominal value of the shares without changing the overall amount of share capital in issue.

What this guidance note covers

This is called consolidation or sub-division of share capital.

This guidance note takes you through the process and has been written in conjunction with our share consolidation & sub-division board minute and shareholders’ ordinary resolution.

Guidance Note: Share Consolidation & Sub-Division is part of Corporate. Just £38.50 + VAT provides unlimited downloads from Corporate for 1 year.