Subdivide Shares
Use the Share Subdivision/Consolidation wizard to record a subdivision of shares.
You can use the Share Subdivision/Consolidation wizard if you want to increase the number of shares by a set ratio and decrease the nominal value of the shares by the same ratio while you keep the share class capital and the share class name and rights unchanged.
Before you start
Make sure you have created the share class you want to subdivide from as well as the share class you want to subdivide 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 subdivision.
Note
The amount of issued shares must match the amount of allotted shares within each share class.
In this example, two share classes are used. The share class to subdivide from is an ordinary share class with a nominal value of £1.00 with 100 shares issued and allotted. The share class to subdivide into is an ordinary share class with a nominal value of £0.01 with 0 shares issued and allotted. The two share classes have the same characteristics such as voting rights and capital rights.
The £1.00 ordinary share class with 100 shares is subdivided into a £0.01 ordinary share class with 10,000 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 subdivide from and select Subdivision/Consolidation to open the Share Subdivision/Consolidation wizard.In this example, it is the share class with the nominal value of £1.00.
Note
The Subdivision/Consolidation option is also available on the Shareholders page under Wizards > Batch Many People.
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On the Subdivide/Consolidate From Share Class page, select the share class from which you are subdividing, then select Next.
In this example, the share class with the nominal value of £1.00 is selected.
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On the Subdivide/Consolidate Into Share Class page, select the share class into which you want to subdivide, then select Next.
In this example, the share class with the nominal value of £0.01 is selected.
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On the Event Date page, enter the event date, then select Next.
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On the Conversion page, enter the rate of conversion and select to subdivide all shares or specified shares only. Select Next.
If you select to subdivide specified shares only, you can enter the exact number of shares that you want to subdivide and the names of the shareholders whose shares are to be converted.
In this example, enter 100 shares for every 1 share currently held, which means that the shares are multiplied by 100. All issued shares are subdivided.
- On the Select People page, you can review or edit the shareholders this subdivision affects. Select Next.
If you chose to convert all issued shares, all of the shareholders are listed with the amount of shares they will own when the subdivision is finalised. If you chose to subdivide specified shares only, you can specify the affected shareholders and the shares here using the Edit option that displays.
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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.
- 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 Notice page, review and if required, amend the wording of the automatically generated notice. 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 complete the wizard.
If you chose to update all records immediately, the Share Classes page displays the share class subdivision. You can find the documents produced for this event in Documents > Working Documents.
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.
What's next?
Once you have subdivided the shares, you can then cancel the old share class if needed. Refer to Cancel a Share Class for more information.
