Issue Of Shares

Issue Of Shares

Our Issue Of Shares Service is a bespoke service and is only available by contacting us at customerservices@primeformation.co.uk or calling us on 0333 533 0264.

The issue of shares is the process by which Companies pass on shares to new or existing individual or corporate shareholders. Shares may be issued at the very start of the company’s corporate life or at any other point of its corporate existence. Companies may issue the same class of shares or a different class of shares with different voting rights as required. Whilst the issue of shares and share allotment are different technically, they serve very similar purposes as they both describe the process of issuance of shares to new or existing members who then become shareholders or owners of the company.

This is to be differentiated from share transfer which involves existing company shares being passed from one existing shareholder to another. The first shareholders at the incorporation of the company are termed ‘subscribers’.

The initial subscription to shares and subsequent issue of shares is undertaken to raise finance, pay debts, grow the company from within, project fund, or fund the purchase of another company amongst others.

Our Process

• In opening a Bank Account it is usual for Commercial Banks to request proof of share ownership either via an Accountant’s Letter [available at a fee of £49.89 plus VAT]
• Alternatively you may complete and file a Confirmation Statement [available at our standard fee of £65.00 plus VAT. This fee is in addition to the above issue of shares fee] Changes to the shareholding of a company would only be noted on the public register when a Confirmation Statement and Form SH01 is completed and filed with Companies House
• Our required documentation for the issuance of shares include the following:
  • Application Letter – A shareholder should express his/her desire to purchase additional shares at a specified price per share addressed to the company in compliance with the legal specifications of the company’s Article of Association.
  • Minutes of Meeting – The directors are required to hold meetings and record in the minutes of meeting, decisions reached in the governance and management of the company including decisions to issue new shares and the approval of the allotment of shares to specific persons.
  • Special Resolution by the existing shareholders would be required where issuance of shares is considered for new shareholders. Companies incorporated under the Companies Act 1985 with an Authorised share capital would have a pass a special resolution to amend the Articles of Association and remove the restrictions imposed by an Authorised share capital.
  • Companies House Form SH01 in respect of the Return of Allotment of Shares must be completed and delivered to Companies House within one month of the issuance of shares to avoid committing an offence under Companies Act 2006.
  • Share Certificates must be issued within two months of an issue of shares.

The update of the statutory register is not included in this fee.