Issue of shares resolution

Issue of shares definition

The shareholding structure of your business details the people who own your business and how much of your business they own. For example, if a company has two shareholders owning 50% of the shares each, they are entitled to an equal distribution of the profits the business makes after corporation tax on that profit has been paid.

Companies issue new shares for many different reasons including:

• to reflect the level of personal investment in a business at the outset and any personal investment made later on,
• to attract new directors and investors as compensation for their labour or monetary investment.
• to repay company borrowings, and
• to distribute to members of staff to encouragement involvement and loyalty.

For help and advice on issuing shares, please call us on +44 (0) 207 689 7888 or email us at info@yourcompanyformations.co.uk.

Issue of shares – how our service works

New shareholder application letters

Prior to the issuance of new shares, we recommend that the would-be shareholder must write to the company agreeing to take the shares in accordance with the constitution and Articles of the company.

Special resolution preparation

If a company wishes to issue additional shares to a new shareholder, all existing shareholders within the company must pass a special board resolution to that effect.

Completion of board minutes documentation

There should be the recorded minutes from a board meeting where approval to issue the shares is approved.

Return of Allotment Shares Form SH01

The SH01 form must be completed and submitted to Companies House within 30 days of the issuance of the new shares otherwise all officers of the company will be in “default” under the Companies Act 2016. A confirmation statement will be completed to update Companies House with the latest share capital and share holding.

Certificates demonstrating new company share owner

We also prepare the required certificates indicating the new revised share structure of your business including the names and stakes of each individual shareholder.