Q&As

Can a single class of shares be sub-divided into multiple classes with differing dividend rights if the company has 1985 Table A articles of association?

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Published on LexisPSL on 27/06/2016

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • Can a single class of shares be sub-divided into multiple classes with differing dividend rights if the company has 1985 Table A articles of association?
  • 1985 Table A provisions on the sub-division of shares
  • Procedure
  • Shareholder remedies

Can a single class of shares be sub-divided into multiple classes with differing dividend rights if the company has 1985 Table A articles of association?

Section 617 of the Companies Act 2006 (CA 2006) allows a limited company to alter its share capital by sub-dividing its shares. CA 2006, s 618 permits a limited company to exercise a power to sub-divide its shares, or any of them, into shares of a smaller amount than its existing shares, provided that its shareholders have passed a resolution authorising it to do so. The resolution may be an ordinary resolution, unless the company’s articles of association require a higher majority (or unanimity). The

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