Q&As

What is the process for a redesignation of shares?

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Published on LexisPSL on 18/07/2016

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

  • What is the process for a redesignation of shares?
  • What is the process for a redesignation of shares?

What is the process for a redesignation of shares?

This Q&A examines how a company may carry out a redesignation of shares, meaning a change in the name of some or all of a class of shares that it has in issue, without any change being made to the number or nominal value of those shares or any change in the class rights attaching to them. If there is to be a change in the number or nominal value of a company's shares, whether or not this is accompanied by a change in their name, it is an alteration of share capital and the relevant procedure set out in section 617 of the Companies Act 2006 (CA 2006) must be followed (see our subtopic: Alteration of share capital).

It is assumed that the company carrying out the redesignation of shares is not a listed company or an AIM company, when additional procedural requirements may need to be observed.

What is the process for a redesignation of shares?

It is possible to effect a redesignation of shares, as contemplated by CA 2006, s 636.

There is no process for redesignating shares set out in CA 2006, s 636, but market practice is to pass an ordinary resolution (although a special resolution will be necessary if any amendments to the company’s articles of association are needed as a result of the

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