Redenomination of share capital
Redenomination of share capital

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

  • Redenomination of share capital
  • Initial considerations when a redenomination is proposed
  • Consents
  • Class rights
  • Larger reorganisation or transaction
  • Power to redenominate share capital in accordance with CA 2006, s 622
  • Exercise of the power to redenominate shares
  • Additional requirements for listed companies
  • Additional requirements for AIM companies
  • Steps to be taken after a redenomination
  • More...

IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. At this point in time (referred to in UK law as ‘IP completion day’), key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see Practice Note: What does IP completion day mean for Corporate lawyers?

Coronavirus (COVID-19): Following the coronavirus (COVID-19) outbreak, some Companies House filing and other administrative procedures have been temporarily suspended or changed. For further details of the impact of COVID-19, see Practice Note: Coronavirus (COVID–19)—impact on company filing and administrative procedures.

A redenomination of share capital is the conversion of shares from having a fixed nominal value in one currency to having a fixed nominal value in another currency.

Prior to 1 October 2009, a limited company having a share capital wanting to redenominate all or any of its share capital first had to cancel the shares by way of a reduction of capital or a share buyback (followed by a cancellation) before issuing new shares in the new currency. This process was administratively onerous, expensive and could have had potentially adverse tax consequences.

On 1 October 2009, the Companies Act 2006 (CA 2006)

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