Share capital – issue or allot new shares
Can I use Kudocs to issue new shares?. Yes. You can use Kudocs to perform the entire share issue if you want (including steps like obtaining authority to issue, disapplying or running a pre-emption process, subscription agreement, deed of adherence, and then doing all the legwork to implement the share issue – share certs, SHo1, register updates, etc).
Alternatively you can complete those legal processes off line, and still use Kudocs to do the legwork of implementing the share issue (share certificate, register updates, SHo1, etc).
Find out how to do this, here.
What is the difference between issue and allot? Nothing. They are the same thing. Allotting shares is slightly old fashioned terminology
What is pre-emption and what do I do about it? Pre-emption grants existing shareholders the right to new shares or other equity in proportion to their current shareholding. It is a way for shareholders to prevent being diluted (reduce their % holding) when new shares are issued. These rights are defined by the Companies Act 2006, in the company’s articles of association or in a shareholder agreement. Shareholders must either be offered the chance to buy the new shares/ equity, or agree to waive (also known as ‘disapply’) their rights for a specific share or other equity issue.
Will Kudocs update Companies House after a share issue? Yes: if you select the option, Kudocs will file an SHo1 for you automatically at Companies House via the API. You don’t have to do anything!
Will Companies House know the details of the investors/ investments if this filing is made? No. The filing only contains high level information about the shares issued and the amount paid. It does not disclose who bought the shares or how many they bought. The only information that Companies House has about shareholders and shareholdings is in the confirmation statement, which has to be filed at least once a year (you can file it more often if you want). It contains a complete list of all shareholders and shareholdings. From that it is possible to work out some details about investors and investments.
Will Kudocs generate share certificates for me? Yes, if you ask the system to do so. You can generate wet or electronically signed certificates (Kudocs will manage the signature process for you) and you can use Kudocs to distribute the signed certificates to all shareholders once signed. Kudocs will even automatically cancel any preceding share certificates to prevent duplication.
Can I use Kudocs to generate EIS or SEIS certificates for investors? Yes, once the shares have been issued, just click on the EIS/SEIS button and follow the very easy instruction. For more info see here: