Share capital – subdivision and consolidation
What is the difference between subdivision and consolidation? Subdivision enables a company to decrease the nominal value of each share which increases the total number of shares (e.g. 1,000 shares of £1 subdivided to £0.10 increases the number of shares to 10,000. The total number of shares owned by a shareholder will increase, but the nominal value of each share will decrease. The total nominal value remains £1,000).
Consolidation enables a company to increase the nominal value of each share which decreases the total number of shares (e.g. 1,000 shares of £0.10 consolidated to £1 decreases the number of shares to 100. The total number of shares owned by a shareholder will decrease, but the nominal value of each share will increase. The total nominal value remains £1,000).
Will Kudocs detect if it is a subdivision or consolidation? Yes, based upon the new nominal value you enter Kudocs will either subdivide or consolidate your shares. If you chose the perform function, Kudocs will also adjust the resolution accordingly.
What happens to the old share certificates? Kudocs will cancel all existing share certificates in the relevant class for each shareholder concerned.
Will Kudocs create new share certificates? You have the choice during the process for Kudocs to generate new share certificates or not. If you choose to create your own certificates, remember to update the latest share certificate number in the company settings in Kudocs.
Will Kudocs notify Companies House for me? CoHse does not currently support electronic filing of form SH02. However, Kudocs will provide you with a completed SH02 which you will need to download, complete and send to the address provided.