Preference Share Issue Service

Commercial

We believe everyone is entitled to high quality legal advice, so we’ve put together some free guides on key areas of corporate and commercial law. Just select the topic you want to explore.

Our Preference Share Issue service is suitable for companies incorporated in the UK.

Preference shares, as the name suggests, are shares in a company that have certain preferred rights over other shares in the company. These preferences are commonly in relation to dividends and/or a return of capital so that preference shareholders have a right to a dividend and to a repayment of capital ahead of other shareholders.

You might want to issue preference shares as a means of raising investment in your company, for example where borrowing is not available or where the investor is willing to accept that it will only see a return on its loan/investment if the company has distributable profits (in exchange for a larger return naturally).

Often preference shareholders have no right to vote unless their dividend is in arrears or the matter being voted on affects their position on a winding up of the company.

The issue of preference shares is regulated by the Articles of Association of a company, company law (in particular the Companies Act 2006) and any Shareholders Agreement entered into by the relevant shareholders.

If you wish to issue preference shares we can assist you by:

  • Advising on the options and alternatives available.
  • Reviewing the company’s existing Articles of Association, any Shareholders Agreement and any other documents that may impact on the issue of preference shares.
  • Amending the company’s Articles of Association.
  • Drafting directors and shareholders resolutions to amend the Articles, approve the allotment of preference shares and to waive pre-emption rights.
  • Preparing share certificates.
  • Making all necessary filings at Companies House.
  • Updating the company’s registers as required.

We will provide you with a fixed quotation to prepare all of the necessary documentation.

PREFERENCE SHARE ISSUE SERVICE

From £800+VAT

Please contact us for a fixed quotation.