The following Corporate practice note provides comprehensive and up to date legal information covering:
This Practice Note considers the nature of shares in a company and the classes into which they can be divided. If a company has shares of different classes, then class rights may exist and consideration needs to be given to:
whether those class rights can be, or have been, varied, and
the provisions which apply to class meetings in the Companies Act 2006 (CA 2006)
For further information, see Practice Note: Class rights and variation of class rights.
The CA 2006 merely provides that a 'share' is a share in the company’s share capital.
References to shares in the CA 2006 also include stock, unless there is a distinction made between shares and stock. Stock is the aggregate of any number of fully paid shares, which can be held without any regard to the original nominal amount of the shares. Stock can be transferred or split up into fractions, without any regard to the shares' nominal value. The historic reason why companies used to convert shares into stock is that, prior the Companies Act 1948, there was a requirement to give each share a distinctive number, which created administrative difficulties for companies. There was no equivalent requirement for stock.
A company’s shares may no longer be converted into stock. However, stock created before 1 October 2009 may be reconverted into shares by
Free trials are only available to individuals based in the UK
Complete all the fields above to proceed to the next step.
**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
MedcoSTOP PRESS: A new RTA small claims protocol for whiplash claims comes into effect for accidents occurring on or after 31 May 2021. The small claims track limit for personal injury claims arising from an RTA is increased to £5000 in respect of general damages for pain, suffering and loss of
Claiming negligent misrepresentation or negligent misstatement—practical considerationsA claim for negligent misrepresentation may often be brought alongside or in the alternative to a claim for negligent misstatement. It is therefore useful to understand the key practical considerations in respect
Commercial Property Standard EnquiriesThe Commercial Property Standard Enquiries (CPSE) have become the industry standard pre-contract enquiries for commercial property transactions:•CPSE.1 (version 3.8) General pre-contract enquiries for all commercial property transactions•CPSE.2 (version 3.4)
Arms length management organisations (ALMOs)An arms length management organisation (ALMO) is a not-for-profit company that provides housing services on behalf of a local housing authority (LHA). Usually an ALMO is set up by the LHA to manage and improve all or part of its housing stock with the LHA
0330 161 1234