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Home Corporate Services Issue Additional Classes of Shares Benefits of Issuing Additional Classes of Shares

Benefits of Issuing Additional Classes of Shares

Setting Up New Classes of Shares in an Existing Company from £125.00
3. Benefits of Issuing Additional Classes of Shares

Benefits of issuing additional classes of shares

Issue More Shares

Issuing additional classes of shares was once the preserve of major corporations, but these days it is common for companies of all sizes to benefit from this useful method of structuring share composition.

An additional class of shares is not just a good way of generating extra investment, it can also enable a company to enact many important changes, such as rewarding employees, making it possible to vary the amount of dividend that is paid to different groups of shareholders, and raising money without giving away voting rights.

Companies that want to pursue this option should bear in mind, however, that the issuing of additional share classes is strictly regulated. Directors have to make sure the share issue is conducted correctly, and are obliged to keep Companies House up to date in a prompt and accurate manner.

This can be a lot to deal with, so if you are thinking of exploring an additional class of share issue, get in touch with Coddan. We are one of the UK's leading corporate service providers and our expertise can help to ensure that your additional class of share issue runs smoothly and effectively.