Redesignate Shares
Use the Share Redesignation wizard to record a redesignation of shares.
You can use the Share Redesignation wizard when there is a renaming or reclassification of the share class and there is no change in the amount of issued shares or in the nominal value of the shares, though the par value can change and there is also a change in the rights and restrictions associated with the shares.
Watch this short video on how to redesignate shares or read the steps below.
Before you start
Make sure you have created the share class you want to redesignate from as well as the share class you want to redesignate into. Refer to Create a Share Class to learn more. If authorised shares have to be entered, make sure the amount is equal to at least the total amount of shares that result after the redesignation.
Note
The amount of issued shares must match the amount of allotted shares within each share class.
This example uses two share classes. The share class to redesignate from is an ordinary share class with a nominal value of £1.00 with 100 shares issued and allotted. The share class to redesignate into is an ordinary-A share class with the same nominal value of £1.00 with 0 shares issued and allotted. The two share classes have the same characteristics such as voting rights and capital rights.
Note
The nominal value of the share class you redesignate into can also be different if you also want the par value of the shares to change after the conversion.
The £1.00 ordinary share class with 100 shares is redesignated into the £1.00 ordinary-A share class with 100 shares. To do that:
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Open the required company record and go to Ownership > Share Classes.
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Select Options
against the share class you want to redesignate from and select Redesignation to open the Share Redesignation wizard.In this example, it is the ordinary share class with the nominal value of £1.00.
Note
The Redesignation option is also available on the Shareholders page under Wizards > Batch Many People.
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On the Share Class to Redesignate From page, select the share class from which you are redesignating, then select Next.
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On the Share Class to Redesignate Into page, select the share class into which you are redesignating, then select Next.
In this example, it is the ordinary-A share class with the nominal value of £1.00.
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On the Event Date page, enter the event date, then select Next.
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On the Issued/Unissued page, select to redesignate all issued shares or specified shares only.
If you select to redesignate specified shares only, you can specify the number of shares to redesignate for any shareholder on the next page.
In this example, all issued shares are redesignated.
- On the Select People page, you can review or edit the shareholders this redesignation affects. Select Next.
If you chose to convert all issued shares, all of the shareholders are listed with the amount of shares they currently hold. If you chose to redesignate specified shares only, you can specify the affected shareholders and the shares here using the options that display.
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On the Notes page, enter any relevant notes and record whether the notes should appear on the statutory registers. Select Next.
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On the Board Meeting page, enter the date of the board meeting that was held approving or noting this event, then select Next.
If the date of the board meeting is unknown, skip this step.
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On the Shareholders' Resolution page, enter the shareholder resolution details, if required, then select Next.
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On the Action page, choose whether you want to save the event as pending or update all records immediately, then select Next.
In the Tracking section, you can assign the event to a specific user and add a reminder. Refer to Pending events to learn more.
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On the Documents page, select the documents you want to generate for the event and select Next.
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On the Finish page, wait while the event and the documents are processed. When the status shows as Completed, select Finish to close the wizard.
If you chose to save the event as a pending event, you can find the pending event in Compliance > Pending Events. You can action the pending event there when required.
If you chose to update all records immediately, the Share Classes page displays the share class redesignation. You can find the documents produced for this event in Documents > Working Documents.
What's next?
Once you have consolidated the shares, you can then cancel the old share class if needed. Refer to Cancel a Share Class for more information.
