Share classes are most commonly created to allow a company to declare different dividends on different share classes (e.g. a dividend of £1 per share on ‘A’ shares but £2 per share on ‘B’ shares) but they can also be created to provide, for example, differing voting rights to A and B Shares or differing rights to a return of capital on a winding-up.
MULTIPLE SHARE CLASSES DRAFTING SERVICE
What does our package include?
- Telephone Consultation – to provide guidance and to take detailed instructions.
- Review of existing Articles – reviewing the company’s existing Articles and any other relevant documentation, such as a Shareholders Agreement
- Drafting Articles – Drafting appropriate Articles of Association or variations to your existing Articles.
- Resolutions – Drafting shareholders and directors resolutions to approve and adopt the new/amended articles.
- Re-designation – Re-designating an existing share class, if appropriate.
- Issuing new shares – if appropriate.
- Filings – Making the necessary filing at Companies House.
- Guidance – Providing full instructions for directors and shareholders.
We will provide you with a fixed quotation for preparing all of the necessary documentation.
The rights attaching to each share class must be set out in the company’s Articles of Association. This can be achieved by amending the exiting Articles or adopting new ones. Articles of Association (and amendments thereto) are adopted by a special resolution of the members.