Sub-division and consolidation of shares
Sub-division and consolidation of shares

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

  • Sub-division and consolidation of shares
  • Sub-division and consolidation
  • The meaning of sub-division
  • The meaning of consolidation
  • Sub-division, consolidation and division used together
  • Sub-division as a way of creating a new class of shares
  • Initial considerations when a sub-division or consolidation is proposed
  • Consents
  • Class rights
  • Rights of minority shareholders
  • 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.

There are a variety of ways in which a company's share capital may be altered in accordance with the provisions of the Companies Act 2006 (CA 2006).

Sub-division and consolidation

It is possible to sub-divide or consolidate all or any of the shares of a limited company pursuant to CA 2006, s 618.

An alternative method of sub-dividing and consolidating shares is by scheme of arrangement approved by the court under CA 2006, Pt 26. This is a process generally used to restructure a company in an insolvency situation or to facilitate mergers and takeovers. For further information on schemes of arrangement, see Practice

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