Benefits of Issuing Additional Classes of 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.