The following Corporate Q&A provides comprehensive and up to date legal information covering:
Before proceeding with any sub-division of shares the company’s articles of association will need to be reviewed to ensure that there is no restriction in doing so. Although it is not necessary to have a specific article allowing a sub-division it is possible to have a restriction.
If there is a ban on sub-dividing shares within the articles these will need to be amended by special resolution to remove this restriction.
Under section 618 of the Companies Act 2006 (CA 2006):
'(1) A limited company having a share capital may—(a) sub-divide its shares, or any of them, into shares of a smaller nominal amount than its existing shares, or(b) consolidate and divide all or any of its share capital into s
'(1) A limited company having a share capital may—
(a) sub-divide its shares, or any of them, into shares of a smaller nominal amount than its existing shares, or
(b) consolidate and divide all or any of its share capital into s
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
What is a company's constitution?A company’s 'constitution' is defined under the Companies Act 2006 (CA 2006) as including:•the company’s articles of association, and•any resolutions and agreements affecting a company’s constitutionThe CA 2006 definition of 'constitution' is not exhaustive and also
This Practice Note provides guidance on claims for ‘use and occupation’ or mesne profits, and how and when double rent or double value can be claimed.Claims for use and occupationA claim for use and occupation is possible where there is occupation of land without an express agreement fixing the
A limited company that proposes to issue redeemable shares must comply with the provisions of the Companies Act 2006 (CA 2006).Why do companies issue redeemable shares?A company may wish to issue redeemable shares so that it has an alternative way to return surplus capital to shareholders without
For guidance on the basic features of the doctrine of estoppel and the different classifications it has been subject to, see Practice Note: Estoppel—what, when and how to plead and related content.Promissory estoppel—what is it?Where A has, by words or conduct, made to B a clear and unequivocal
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.