Different classes of share capital
Different classes of share capital

The following Corporate guidance note provides comprehensive and up to date legal information covering:

  • Different classes of share capital
  • Meaning of 'share'
  • Nature of shares
  • Nominal value of shares
  • Transferability of shares
  • Pre-emption rights
  • Classes of shares
  • Ordinary shares
  • Preference shares
  • Convertible preference shares
  • more

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:

  1. whether those class rights can be, or have been, varied, and

  2. 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.

Meaning of 'share'

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 i