| Commentary

188 Reconversion of stock into shares

| Commentary

188 Reconversion of stock into shares

The Companies Act 2006 abolishes the power of a limited company to convert fully paid-up shares into stock. A limited company which has carried out such a conversion under the previous legislation may reconvert the stock into paid-up shares of any nominal value1. A company may only exercise this power if its shareholders have passed an ordinary resolution authorising it to do so2. This resolution may authorise the company to exercise the power to re-convert on more than one occasion, at a specified time or only in specified circumstances3

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial