Share capital

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The allotment of shares and issue of shares is governed by statute and the applicable statutory provisions differ according to the type of company that is proposing the...

Practice Note

The allotment and issue of shares is governed by statutory rules, which differ according to the type of company which is proposing the allotment (private or public,...

Practice Note

Under the Companies Act 2006 (CA 2006), a company is formed when one or more persons: • subscribe their names to a memorandum of association, and • comply with the...

Practice Note

A limited company may hold, or deal with, shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. Those shares are held...

Practice Note

A limited company may hold, or deal with, shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. Those shares are held in treasury...

Practice Note

It is a fundamental rule of English company law that a limited company having a share capital must maintain that capital. Therefore, a company must not reduce its share...

Practice Note

There are provisions in the Companies Act 2006 (CA 2006) governing how a limited company may reduce its capital. The restrictions in the CA 2006 relating to...

Practice Note

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...

Practice Note

The law regulating the making of distributions by a company, as it applies to all companies, is set out in this Practice Note. For details of the additional rules and...

Practice Note

When a listed company or an AIM company wishes to declare and pay dividends to its shareholders, it has to comply with the provisions of the Companies Act 2006 (CA 2006)....

Practice Note

The Companies Act 2006 (CA 2006) prohibits: • a public company (or its subsidiary) from giving financial assistance for the acquisition by a person of the company's...

Practice Note

There are a number of circumstances in which shares in a company may be transferred, eg upon a sale of the shares, through the transmission of the shares by operation of...

Practice Note

A limited company may hold, or deal with, shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. Those shares are held in treasury...

Practice Note

A company must be able to provide any of its members with a statement of capital on request. A statement of capital must also be filed with Companies House in connection...

Practice Note

The Companies Act 2006 (CA 2006) gives existing shareholders of companies a right of pre-emption by providing that a company must not allot equity securities unless it...

Practice Note

This Practice Note covers the issues relating to pre-emption rights of shareholders of listed companies. A listed company has obligations pursuant to provisions of the...

Practice Note

A limited company that proposes to carry out a redemption of redeemable shares must comply with the provisions of the Companies Act 2006 (CA 2006). In addition to the...

Practice Note

A limited company that proposes to carry out a redemption of redeemable shares must comply with the provisions of the Companies Act 2006 (CA 2006). In addition to the...

Practice Note

This Practice Note describes the procedure for a limited company to carry out redemption of its redeemable shares. Companies must comply with Part 18 of the Companies Act...

Practice Note

It is a fundamental rule of English company law that a limited company having a share capital must maintain that capital. Therefore, a company must not reduce its share...

Practice Note

There are a number of circumstances in which shares in a company may be transferred, eg, upon a sale of the shares, through the transmission of the shares by operation of...

Practice Note

A limited company may hold, or deal with, shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. Those shares are held in treasury...

Practice Note

A limited company may buy back shares in itself, if certain conditions set out in the Companies Act 2006 (CA 2006) are met. This is known as a share buyback or a purchase...

Practice Note

A company’s share capital comprises the number of shares it has issued and allotted to shareholders at any given time. This Practice Note considers the rules relating to...

Practice Note

Shares in a company can be issued as certificated shares or uncertificated shares. Shares issued by private companies and unlisted public companies are usually held in...

Practice Note

There are provisions in the Companies Act 2006 (CA 2006) governing how a limited company may reduce its capital. The restrictions in the CA 2006 relating to reductions of...

Practice Note

It is a fundamental rule of English company law that a limited company having a share capital must maintain that capital. Therefore, a company must not reduce its share...

Practice Note

This guidance, dated March 2014, produced by The Chartered Governance Institute (formerly known as ICSA: The Governance Institute) (CGI), provides new model wording for...

Practice Note

The details to be included in a statement of capital, where one is required from a company by various provisions of the Companies Act 2006 (CA 2006), were simplified with...

Practice Note

A limited company that proposes to carry out a redemption of redeemable shares must comply with the provisions of the Companies Act 2006 (CA 2006). In addition to the...

Practice Note