Currently I have 2 Ordinary Shares.My wife has 1 Ordinary Share and 1 Class B Share.My mother, father and father in law have a class C share each.
I started contracting via a ltd company since October 2013 and as I had already had PAYE earnings that had taken me above the 40% threshold, I paid my wife dividends via the class B share.
I intend to pay my parents and father in law dividends as of next tax year. This money will not be paid back to me or my wife in any way shape or form.
I recently read about the Arctic Systems case and after researching, the advice seems to be that having multiple share classes is not recommended.
I want to move to a situation where I have a single ordinary share class with the following allocation:
Me : 3 sharesWife: 2 shares.Mum : 1 share.Dad: 1 Share.Father In Law : 1 Share.
So I will need to issue an additional share.
Currently share class B has no voting rights and share class C has no voting and no entitlement to distributions. However, I am happy to effectively have those restrictions waived and all shares to be ordinary voting shares.
Amir, thank you for your detailed reply and your patience in receving my answer.
Basically, you wish to rename various classes of shares into one class ie. Ordinary shares.
You need to pass an ordinary resolution and rename the Class B and Class C shares into ordinary shares. They will then carry the rights of ordinary shares.
You file Form SH08 at Companies House.
More information on the form and guidlines for completing form SH08 can be found here
Guidance on completing form SH08
Allotment of new shares (one additional share)
Complete and file Form SH01..it can be downloaded here
I hope this is helpful and answers your question.
If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.
If you are happy and there are no more issues I will appreciate if you would kindly rate the service I provided to ensure I get credited for it.