Companies issue new shares for many reasons, for instance:
- To raise capital to fund expansion or the acquisition of another company
- To allow directors and employees to participate in profits or the sale or partial sale of the company
- To vary or enhance the rights of existing shareholders
The Articles of Association will state the process that the company will have to follow for approving a new issue of shares. Usually the process is as follows:
- Pass an ordinary or special resolution, if one is required, and minute the meetings.
- Update your company records to reflect the allotment of shares
- Issue share certificates to the shareholders
- Complete form SH01 and submit it to Companies House within one month of the date of allotment.
Form SH01 includes the following information:
- Company Name
- Company registration number
- The date on which the shares were allotted
- A description of the category of shares, e.g. ordinary shares, deferred shares, redeemable shares, preference shares.
- Currency of shares
- The nominal value of each share
- The amount paid and unpaid per share
- Details of the consideration received for the shares issued if the payment is not in cash
- The revised statement of capital following the new issue.
The SH01 does not include details of shareholders. Information about shareholders is included in the Annual Confirmation statement. There is nothing to stop the Annual Confirmation Statement being submitted early if the company is keen to update the public records immediately.
You can use our service to prepare form SHO1 and to submit it electronically online.