hi and welcome to ltd24ore.com business
school
in this video we will look through how
to issue new shares
for a uk limited company the procedure
to issue
new company shares is not complicated
but
requires a lot of compliance obligations
before issuing shares in your limited
company we would advise
seeking professional advice to ensure
that you have considered
the tax implications in particular
capital gains tax
in order to issue shares you have to
perform the following
preliminary checks your company
is incorporated under the companies act
2006
you have to do this check because if the
company was formed under the company's
act
1985 then you may well find
that the company's articles limit the
amount of shares capital
that can be issued there is no
restriction
in your articles of association for
directors to a lot
shares on the company's behalf precisely
what you do have to check
is the absence of pre-emption rights
of existing shareholders anyone issuing
share capital should also check both the
articles
and any shareholders agreement to
determine whether the existing
shareholders
have preemptive rights to purchase any
new shares
issued if there are any such rights
these may need to be amended by a
special resolution
there is only one class of shares
following the allotment
the new shares will have the same rights
as the previous ones
the process to issue new shares in this
case
would be as follows 1. hold a board
meeting and record in the minutes
stating the board has resolved to a lot
to the shares
you should state the number and class of
shares
realities the price paid and when this
took place
these should be kept for 10 years two
issue share certificates to the new
shareholders
using our standard template three
complete the company's house sh01
form statement of capital the form
must be filed with companies house
within one month
of the allotment of the shares four
amend the company's statutory register
of members
which the company or your accountant
maintains
five include the new shareholders
must be included in the company's next
confirmation statement
which replaced the annual return from
30th of june
2016. six
show the new shares issued within the
company's accounts
increasing the level of shareholders
funds shown in
the balance sheet