Increasing or decreasing shares

A company may decide to issue shares (increase the total) or acquire its own shares (decrease the total). 

Such changes must be notified to the Registrar of Companies within ten working days.
 

Before you begin

1. Ensure the company's share register ¹ is updated with the changes.
2. You will need the number of shares issued and the date of issue.  Ensure you also have the details of each shareholder to be added.
3. (Optional) If approval for the share issue has been provided, you will have the option to enter the terms and the date.
4. (Where applicable) You will have the option to upload a director's certificate to support the share increase.
5. When decreasing shares, you will need the number of shares purchased or acquired and the date of purchase, redemption, consolidation, or acquisition. Ensure you also have the details of each shareholder or share allocation to be removed.
6. You will need to be logged on as a registered user of the website. Read more...
7. You will need Company Authority for the company. Read more...
   
    

Step 1 | Locate the company you want to update

• From the Online Services – Do It Now menu choose Shares and Shareholders under Update Company Details.
• Find the company by entering some search criteria (for example, either the company name or the company number).
• From the Search Results select the company you want to update.
• Click on the Shareholdings tab.
• Select Update Details.

Step 2 | Select the type of change you want to make

The options you have are:

• Increasing shares
  
  • Share issue
  • Conversion/Subdivision of shares
• Decreasing shares:
  
  • Acquisition.
  • Purchase
  • Redemption
  • Consolidation

Step 3 | Enter the terms and the date (optional)

If approval for the share issue has been provided, you will have the option to enter the terms and the date.

Step 4 | Upload a director's certificate (where applicable)

You will have the option to upload a director's certificate to support the share increase.
 

Step 5 | Select 'Continue'

The information required to support the change is dependant on the option you selected.

• You will be prompted to provide the appropriate details of the share increase or decrease.
• All fields marked with an asterisk are mandatory and must be completed.
• To alter the type of change you are making select the Back to select type of change hyperlink at the top of the screen.
• To cancel the change, select the Cancel button in the bottom right hand corner of the screen.
   

Once you have completed all the required information select the Continue button.  You will be returned to the ‘Update shareholdings’ screen, here you have the option of attaching a directors certificate.

• Select the Browse button to upload the certificate from your own files.

Step 6 | Amend your share allocations

You will now need to amend the share allocations to reflect the changes you have made.  For example, if you have increased the share total you will now need to allocate the shares.  However, if you need to add a new shareholder or make amendments to existing shareholders details, you should complete these changes first.

What is a director's certificate?

In some circumstances you may need to provide a director's certificate to the Registrar (for example, to support an increase of shares under section 47 or an issue under section 49 of the Companies Act 1993 or if required by a company's constitution).

Notes

¹ Companies are required by the Companies Act 1993 to maintain their own share register.  The information held on the companies register about a company's shares and shareholding does not replace the requirement for a company to maintain its own register.