Our cost for setting up a limited company directly with Companies House is £54.99 and the process typically takes around 12 hours to complete. Coddan CPM offers a competitive filing fee starting at just £54.99 for the establishment and straightforward registration of your private limited by shares. The fee for filing a Certificate of Incorporation is only £54.99, get your official digital Certificate of Incorporation free of charge, or get it by post.

Our company formation packages provide everything you need to get a UK company up and running, from obtaining a UK business address in many locations. The main package includes full company documents, Companies House fees, e-filing, and a Certificate of Incorporation, Memorandum, Articles, and more. Your business is as unique as you, and documents should be uniquely tailored for your company, check our flat-rate business formation packages.

The professional package includes printed and digital documents, a company seal, Companies House fee, and a certificate of incorporation, with no hidden fees. Our standardised company formation package includes the certificate of incorporation, minutes of the first meeting, and share certificates is standard. These documents are crucial for legal and administrative purposes, providing proof of the company’s existence and establishing the ownership of shares.

Certificates of incorporation are official proof that your company is legally registered. It includes key details like the company name, registration number, and the date of incorporation. Company formation is completed when a company is registered with the relevant government body (e.g., Companies House in the UK), and the resulting certificate of incorporation is issued as proof of its legal existence.

This certificate confirms the company is a separate legal entity, shows its registered number and date of formation, and is necessary for activities like opening a bank account. To form a company, you typically register online by providing details about the company and its people, pay a fee, and then receive the certificate once the application is approved. Your company can begin trading, entering into contracts, and employing staff as soon as you receive the certificate. You should keep the certificate in a safe place, as you may need it for future applications or to prove ownership.

Minutes of first meeting document records the decisions made at the initial meeting of the company’s founders, such as the appointment of directors and the issuance of shares.

Shares certificates are legal documents that certify the ownership of a specific number of shares in the company. They are essential for proving who owns the company and are often required by banks to open a business account.

First board meeting and official actions:
Hold the first board meeting: This meeting is often legally required shortly after incorporation and is where you officially appoint directors and officers, adopt the company’s bylaws (or Articles of Association), and make other initial decisions.

Appoint officers: Officially appoint the key officers who will manage the company’s daily operations. Approve bylaws: The board formally adopts the company’s internal operating rules (Articles of Association).

Private limited companies must keep accurate meeting minutes for legal protection and accountability, the minutes can be kept at register of minutes. Keeping accurate minutes is crucial for demonstrating compliance with corporate formalities, preserving institutional memory, and protecting against the piercing of the corporate veil. Accurate minutes show that directors have fulfilled their duties, making it difficult for a court to pierce the corporate veil and hold individuals personally liable for corporate actions.

They serve as a formal record of discussions and decisions, which is vital for resolving future disputes or for auditors and third parties to understand the company’s history. In the UK, the Companies Act 2006 requires companies to keep minutes of all board and general meetings for at least 10 years. The minutes must be kept in a secure and accessible location, such as a physical file, a digital document management system, or a board portal. Minutes should include key information like the date, time, location, and attendees of the meeting, as well as an overview of discussions, decisions made, and how each member voted.

Upon company formation, Coddan formation agents provide a digital package containing legally valid PDF documents, such as digital company minutes and an official register, which is a legally required record of officers, members, and minutes. Upon company formation, you will receive a digital certificate of incorporation, which confirms the company is officially registered, and its details will be added to the public register. This digital register includes key information such as the company name, registration date, and company number. A record of officers, members, and other company information, often separated into sections for clarity.

We provide clear and thoughtful advice for setting up your company. All of our company formation service packages include bespoke Articles of Association, completed statutory registers, first minutes, and share certificates upon incorporation.

Once your company has been successfully incorporated, it is crucial to convene a board meeting with the directors of the newly formed limited company. Ideally, this meeting should occur within the first month following the company’s formation to establish a clear direction and framework for operations. As with all formal board meetings, it is necessary to document the proceedings by preparing minutes for the first directors’ meeting. To assist you in this process, we have created a comprehensive and user-friendly template for meeting minutes, which you can easily download, customize, and implement for your company.

During the first directors’ meeting, directors will not only address the essential formalities related to the company’s incorporation—such as approving the company’s registered office address, appointing officers, and determining the share structure—but also engage in a more strategic discussion about the new business. This includes articulating the company’s vision, mission, and core objectives, as well as outlining how the business will operate and adhere to its governing documents, specifically the Memorandum and Articles of Association.

While some agenda items may be common across different companies, the specific matters discussed will vary based on the nature of the business, industry, and the unique goals of the company. This initial meeting sets the tone for future governance and operational strategies, making it a critical step in laying a solid foundation for the ongoing success of the organization.

In the inaugural board meeting, several important matters are typically addressed to ensure a solid foundation for the company. These include:

1. Appointment of a Chairperson:
   Selecting a chairperson to lead the board meetings, facilitate discussions, and ensure that the agenda is followed.
2. Overview of Company Formation:
   Reviewing the specifics of the company’s formation, which encompasses the registered office address, the names of the initial directors, and the legal structure of the company.
3. Director Disclosure of Interests:
   Each director is required to disclose any existing interests in contracts or transactions involving the company, to maintain transparency and avoid conflicts of interest.
4. Appointment of Auditors:
   Choosing a qualified auditing firm or individual to conduct the company’s financial audits, ensuring compliance with legal standards and promoting trust with stakeholders.
5. Selection of Bankers:
   Deciding on a banking institution to manage the company’s finances, including opening business accounts and establishing lines of credit.
6. Determination of Accounting Reference Date:
   Establishing the accounting reference date, which will dictate the company’s financial year-end and influence reporting obligations.
7. Review of Initial Share Capital and Register of Members:
   Confirming details regarding the company’s initial share capital structure and compiling a register of members that lists all shareholders and their respective holdings.
8. Identification of Persons of Significant Control:
   Documenting individuals or entities who have significant control over the company, as required for regulatory compliance, to promote accountability in corporate governance.
9. HMRC Registration:
   Ensuring the company is properly registered with HM Revenue and Customs (HMRC) for tax purposes, including VAT registration and payroll tax compliance.
10. Discussion of Other Urgent Matters:
    Addressing any additional pressing issues that may require immediate attention, including operational concerns or strategic decisions affecting the company’s future.
11. Arrangements for the Next Board Meeting:
    Setting a tentative date and agenda for the next board meeting to ensure continuity of governance and strategic planning.

These discussions and decisions are crucial for establishing a clear operational framework and ensuring the company’s success in its early stages.

It is a legal requirement to accurately document the attendance and discussions that take place during a meeting. This record, once formally compiled, will serve as the official minutes of the inaugural directors’ meeting. To assist you in this process, we have created complimentary template minutes specifically designed for first-time meetings of the board of directors.

While it is essential to tailor these initial minutes to reflect the unique discussions and decisions made during your meeting, our templates offer a comprehensive framework that outlines the critical components you should include. These components generally consist of the names of attendees, the time and location of the meeting, a summary of key discussions, resolutions passed, and any action items assigned. By following this structure, you can ensure that your meeting minutes are both thorough and compliant with legal standards.

All directors must receive a copy of the meeting minutes, irrespective of their attendance at the meeting. This ensures transparency and keeps everyone informed about discussions and decisions made. Additionally, depending on the topics addressed during the meeting, there may be specific documents that need to be submitted to Companies House to comply with legal requirements.

The minutes from the first directors’ meeting, as well as those from all future board meetings, should be meticulously documented and securely archived. These records must be easily accessible for inspection at the company’s registered office. Alternatively, if a different inspection location has been designated, the minutes should also be stored there.

To maintain effective governance, it is crucial to schedule regular meetings for the board of directors. Each meeting should have written minutes produced promptly afterward, capturing key discussions, decisions made, and action items assigned. This practice not only provides a clear record of the company’s activities but also fosters accountability and enhances decision-making processes moving forward.

Keeping and distributing minutes.

Minutes can be generated and stored in an electronic format, provided that they can be reproduced in hard copy upon request. It is essential to retain copies of all meeting minutes for a minimum period of 10 years from the date of the respective meetings. These minutes must be readily available for inspection at your registered office or SAIL (Single Alternative Inspection Location) address. Furthermore, you are required to inform Companies House of the specific location where these minutes are maintained.

In addition to meeting minutes, it is crucial to preserve documentation of any decisions made by the board of directors and all resolutions passed during general meetings. Directors and company secretaries bear the legal responsibility for promptly reporting any changes to Companies House and ensuring that the relevant documentation is filed. This obligation applies to all changes, whether they are made during a formal board meeting or a general meeting, reinforcing the importance of transparent governance and compliance with regulatory requirements.

Coddan CPM provides comprehensive digital minutes from your inaugural board meeting as a feature of our Basic Package, ensuring that you have a clear and organized record of your discussions and decisions. For those opting for our Privacy Plus Package or All-Inclusive Package, we extend the service to include both digital and printed minutes, giving you a tangible record for your files.

In addition to these offerings, you’ll benefit from unrestricted access to our user-friendly Online Admin Portal. This resource allows you to effortlessly view and update your company information at any time. You can also file Confirmation Statements and report changes to Companies House electronically, streamlining your compliance process and saving you valuable time. Our aim is to support your business’s administrative needs with efficient and accessible solutions.

Who must be given a copy of the minutes of the first board meeting?

Every director, along with any other individuals present at a board meeting, should be provided with a copy of the meeting minutes to ensure transparency and proper record-keeping. Furthermore, a copy of these minutes must be securely stored at the registered office or the SAIL address for a minimum duration of 10 years, in compliance with legal and regulatory requirements. Additionally, members of the organization, such as shareholders or guarantors, have the right to request a copy of the minutes from meetings, and it is the responsibility of the organization to furnish these documents upon request, thereby promoting accountability and informed participation.

How long must minutes and copies of resolutions be kept for?

Meeting minutes must be preserved for a minimum duration of 10 years from the date of the meeting in which they were recorded. It is essential that these minutes be accessible for public inspection at the company’s registered office or its SAIL (Service of Process and Inspections) address throughout this entire period. This ensures transparency and allows stakeholders, including shareholders and the general public, to review the company’s decisions and discussions.

A share certificate is a crucial document in the realms of finance and business, serving as a formal declaration of ownership in a company. This certificate not only provides shareholders with a sense of security and stability but also acts as a tangible representation of their investment. By holding a share certificate, investors gain legal rights to a portion of the company’s assets and profits, granting them a voice in significant decisions such as mergers, acquisitions, and other corporate actions.

The share certificate typically includes important details such as the shareholder’s name, the number of shares owned, the company’s name, and the date of issuance. Additionally, it may feature security elements to prevent forgery, thereby enhancing its legitimacy.

For shareholders, this document symbolizes not only their financial stake but also their participation in the company’s growth and governance, reinforcing their role in shaping the future of the business.A share certificate is a vital document for establishing and maintaining effective corporate governance, as well as for obtaining a certificate of good standing.

It serves as an official proof of ownership for shareholders, helping companies accurately track their shareholders and ensuring transparency and accountability in ownership structures. These share certificates are crucial for maintaining precise records of ownership, which are essential for facilitating voting rights, processing dividend payments, and granting other important shareholder privileges.

Moreover, a certificate of good standing provides a formal acknowledgment that a company complies with all applicable statutory requirements, has satisfied its financial obligations, and remains in good standing with the relevant regulatory authorities. This document not only reassures shareholders about the company’s operational legitimacy but also enhances its credibility with potential investors, creditors, and other stakeholders.

Share certificates can represent significant assets for investors. Although the trend toward electronic records is prevalent in today’s digital landscape, the physical form of a share certificate adds an important layer of security and tangibility. In the event of discrepancies or disputes regarding ownership or rights, the physical document can provide concrete evidence in legal proceedings, thus safeguarding shareholders’ rights and interests. Additionally, having a share certificate can also facilitate the transfer of ownership, making it easier for shareholders to sell or gift their shares in an organized manner.

Share certificates serve not only practical functions but also carry significant sentimental value for numerous shareholders. These certificates often showcase intricate designs, elaborate engravings, and official seals, transforming them into both aesthetically pleasing and collectible items. For many shareholders, the presence of these certificates represents not just ownership but also pride in their investment journey and active participation in the growth and development of a company.

In addition to their emotional significance, the issuance of share certificates can profoundly influence the broader economy. By motivating individuals to invest in companies, share certificates play a crucial role in stimulating economic growth and fostering job creation. When investors buy shares and receive corresponding certificates, they bolster the company’s share capital, enabling it to undertake expansion projects, innovate through research and development, and create new employment opportunities within the market.

Furthermore, the existence of tangible share certificates can significantly enhance trust and confidence in financial markets. In an era characterized by the prevalence of digital transactions and online trading platforms, having a physical share certificate can provide a reassuring sense of security for investors.

This reassurance is particularly important for those who may harbor skepticism towards electronic systems or have concerns about cybersecurity vulnerabilities. The physical presence of a share certificate serves as a concrete reminder of the value, significance, and potential growth of one’s investment, reinforcing the investor’s connection to the company and its future prospects.

In a private company limited by shares, share certificates are vital documents that serve as official proof of ownership of shares within the company. These certificates sometimes differ for various shareholders or classes of shares, ensuring that the ownership structure is clearly delineated. Each share certificate typically includes essential information such as the company’s legal name, the registered owner’s full name and contact details, the specific class of shares held, the total number of shares represented by the certificate, and a unique identification number for regulatory purposes.

To maintain legal validity, share certificates are generally signed by at least two company directors or authorized officers. This requirement for dual signatures serves not only as a safeguard against fraudulent activity but also ensures compliance with both corporate governance standards and legal obligations. The issuance of separate certificates plays a crucial role in accurately maintaining ownership records, simplifying the process of share transfers, and preventing disputes that could arise over ownership claims.

Share certificates are customarily issued during significant events such as share purchases or transfers. Once a share transaction is finalized, the company’s registrar or transfer agent meticulously prepares the share certificate. This certificate is then delivered directly to the shareholder, either by conventional mail or hand delivery, ensuring that the new owner possesses their official documentation promptly.

The process of issuing share certificates is detailed and involves numerous steps. Initially, the company must verify the investor’s eligibility, ensuring they meet all regulatory requirements and comply with internal policies. Following this verification, the company’s secretary or registrar is tasked with creating the certificate. The certificate will contain vital details, including the shareholder’s complete name, the company’s registered name, the class of shares, the quantity held, the issuance date, and any unique tax identification numbers.

In cases where shares are allocated to various shareholders or classified differently, separate share certificates will be tailored to reflect the specific characteristics associated with each holding. Authorized signatories—typically senior company officials—will then affix their signatures to the certificate, further enhancing its authenticity.

Moreover, it’s important to recognize that electronic share certificates have gained significant traction in recent years. These digital certificates, stored within sophisticated electronic record-keeping systems, provide the same legal standing and rights as traditional paper certificates. They offer advantages such as easier storage, faster processing times, and greater efficiency in tracking ownership, thus reflecting a modern approach to share ownership in the digital age. However, despite their digital format, electronic share certificates retain all the legal implications and integrity of their physical counterparts.

Share certificates, frequently referred to as stock certificates, represent a formal, tangible proof of ownership and investment in a corporation. These documents encapsulate the rights, entitlements, and obligations of shareholders, effectively defining the legal relationship between the shareholders and the company in which they invest.

Beyond serving as mere evidence of ownership, the function of a share certificate is multifaceted. It acts as a vital mechanism to protect the interests of shareholders, ensuring they receive their due rights, such as dividend payments, voting rights during shareholder meetings, and access to pertinent corporate information that may influence their investment decisions. Additionally, share certificates help to safeguard against unauthorized transfers of ownership, thereby enhancing the security of both the shareholders and the company.

In the context of corporate transactions, share certificates hold significant importance, particularly during events such as mergers, acquisitions, or Initial Public Offerings (IPOs). During these critical phases, share certificates are instrumental in determining the company’s ownership structure and market valuation, allowing the involved parties to evaluate the financial implications and strategic advantages effectively. These documents also facilitate the smooth transition of ownership and ensure that existing shareholders’ rights are preserved throughout the process.

Mandatory information to include on share certificates.

When issuing a share certificate, it is crucial to include specific pieces of information to ensure that the document is legally valid and binding. While the exact requirements may differ based on jurisdiction or the legal framework surrounding a company’s incorporation, there are several essential elements that are typically required:

1. Company Name and Registration Number:
   The full legal name of the company, as it appears in the official registration documents, along with its unique registration number, which serves as an identifier in government records.
2. Shareholder’s Name and Address:
   The complete name and residential address of the shareholder, which ensures clear identification of the individual or entity that holds the shares.
3. Class and Quantity of Shares Owned:
   A description of the type of shares issued (e.g., common, preferred) and the total number of shares owned by the shareholder, which provides transparency about the shareholder’s investment in the company.
4. Unique Share Certificate Number:
   Each share certificate should have a distinct identification number that helps prevent duplication and aids in record-keeping.
5. Date of Issuance:
   The specific date on which the share certificate is issued, which is important for establishing ownership periods and rights.
6. Signatures of Authorized Individuals:
   The certificate must include the signatures of authorized personnel, which typically entails the company secretary and possibly other officers or directors. These signatures serve as formal verification of the certificate’s authenticity and the legitimacy of the securities being represented.

The role of the company secretary is particularly vital in this process. They are responsible for ensuring that all regulatory obligations are fulfilled and that the share certificate is properly executed according to the law. The presence of the company secretary’s signature, alongside those of other designated signatories, not only validates the certificate but also affirms the shareholder’s rights and entitlements associated with their shares. This meticulous attention to detail is essential for maintaining corporate governance and protecting the interests of all stakeholders involved.

Before obtaining a share certificate, it is essential to verify your ownership of the shares. Review the relevant share register or your stockbroker account to confirm your holdings.

To start the process of obtaining a share certificate, contact the issuing company or its registrar, especially if you are registering a new company. If your company has just been registered, you may also need to reach out to Companies House, as they oversee company registrations. They will provide guidance on the steps and documentation required to issue your share certificate. The company or registrar will help you verify your share ownership, ensure that the necessary paperwork is filled out correctly, and guide you through any additional requirements related to your company’s registration.

If your share certificate is lost, damaged, or stolen, it is important to act quickly. Notify the issuing company or registrar about the lost certificate, provide the necessary details, and follow their instructions for obtaining a replacement certificate. This process may involve submitting a formal request, proving your ownership, and paying any applicable fees.

Similar to how you can view VAT certificates online, some companies may offer the option to request a replacement for a lost share certificate electronically, which can simplify the process and reduce paperwork. Acting promptly helps protect your ownership rights and allows for the issuance of a new share certificate to update your records.

When do you need to issue a share certificate?

Share certificates are formal documents that represent a shareholder’s ownership in a company. These certificates must be issued within two months of the company’s initial registration, which typically occurs during the company’s first board meeting. This prompt issuance is crucial for establishing the legal ownership of shares right from the outset.

For subsequent transactions, such as the allotment of new shares or the transfer of shares from one shareholder to another, it is essential that share certificates also be issued within two months. This time frame ensures that all stakeholders have timely documentation of their ownership rights.

While share certificates function as evidence of ownership, it is important to note that they are not legally valid until the relevant details of ownership are accurately updated in the company’s register of members. This register serves as the official record of all shareholders and must reflect the current ownership structure of the company for the certificates to have legal standing. Thus, maintaining an up-to-date register is a critical responsibility for the corporate governance of the company.

Do I need to issue one certificate per share?

A separate certificate is not required for each individual share. Instead, a single certificate is issued to a shareholder that encompasses all shares of the same class acquired on the same date. This means that if a shareholder purchases multiple shares of a particular class simultaneously, those shares will be consolidated onto one certificate for convenience.

However, if a shareholder acquires shares of a different class on the same date, a separate certificate must be issued for each class of shares. This ensures that the distinctions between different classes of shares—such as voting rights or dividend preferences—are clearly documented.

Furthermore, when a shareholder acquires additional shares at a later date, or if existing shares are sold or transferred between shareholders, a new certificate will be required. This process maintains clear and accurate records, which helps to prevent discrepancies and confusion regarding ownership.

Overall, this system simplifies record-keeping and enhances clarity for both shareholders and the issuing company, particularly in cases where there are variations in share classes or transaction dates. This structured approach ensures transparency and efficient management of share ownership.

Is there a time limit for issuing share certificates?

Share certificates are important legal documents that must be issued within defined timeframes, unless the company’s articles of association specify different provisions. Specifically, these certificates should be provided to shareholders within two months following the company’s incorporation, as well as during the issuance of new shares or the transfer of existing shares after the company has been established.

This requirement not only ensures compliance with legal and regulatory obligations but also serves to protect the rights of shareholders by providing them with timely and official proof of their ownership. Adhering to these timelines is crucial for maintaining transparency, building trust with investors, and safeguarding the integrity of the company’s shares.

How many share certificates do I need to issue to joint shareholders?

When a group of individuals jointly owns company stock, a single share certificate will be issued to represent that collective ownership. This certificate serves as an official record of the jointly held shares and can be crucial for governance and legal purposes. Shareholders are permitted to create multiple copies of the certificate for personal record-keeping, ensuring that each party involved has access to pertinent documentation regarding their investment.

Legally, the share certificate must include specific information to be valid and recognized. This includes:

• The full names of all individuals who are joint shareholders, clearly identifying each person’s stake in the company.
• The address of only the first-named shareholder listed on the certificate, which adheres to established practices. This approach simplifies communication and provides a clear point of contact among the shareholders.

It is important for all parties involved to maintain open communication and ensure that the share certificate is accurately completed and safeguarded to avoid any misunderstandings or disputes regarding ownership rights.

Can I request a new certificate if I change my name or address?

If you change your address, there is no need to obtain a new certificate; you simply need to update the statutory register of members to reflect the new address. This ensures that all records are current and accurate.

However, if you legally change your name—whether through marriage or by executing a deed poll—a new certificate is required to formalize this change. In order to obtain the new certificate, it’s essential to provide proper identification and valid proof of the name change, which may include marriage certificates or official documentation of the deed poll.

In addition, it is crucial to update the statutory register of members to accurately document the name change. This step is vital for maintaining compliance with legal requirements and ensuring that all records associated with your membership are accurate and up-to-date.

Should you issue share certificates on paper or electronically?

Traditionally, companies have issued physical share certificates to their shareholders, keeping hard copies for their internal records management. However, there is a growing trend towards the electronic issuance and storage of share certificates, which enhances both security and efficiency.

The UK’s Digitisation Taskforce is advocating for the elimination of paper share certificates in favor of a streamlined digital system. This initiative primarily targets public companies, but discussions are underway regarding the potential for extending this digital transformation to private companies as well.

The advantages of issuing and transferring shares electronically are substantial. Digital transactions can be processed significantly faster than those involving paper certificates, thereby expediting share management and reducing turnaround times. Moreover, the costs associated with printing, mailing, and storing physical certificates are minimized. Holding shares electronically also mitigates the risk of loss or damage to physical certificates, ensuring that ownership records are secure and readily accessible. This shift not only reduces administrative burdens but also lowers the expenses related to the replacement of lost or damaged certificates.

Currently, UK companies are still permitted to choose from various formats for share certificates, allowing flexibility in how they manage shareholder documentation. However, it is advisable for companies that opt to issue paper certificates to also retain PDF copies as digital backups, ensuring that they have a secure alternative available in case of misplacement or damage to the physical documents. This approach balances traditional practices with contemporary digital solutions, positioning companies well for future advancements in share management.

Updating the register of members and PSC register.

After issuing or transferring shares, a company is required to meticulously update its register of members as well as its register of individuals with significant control (commonly referred to as the PSC register). Typically, companies maintain these statutory registers at their registered office address for easy access and compliance with legal mandates.

Upon the issuance of new shares, the company must accurately record the following details, where applicable, in its register of members:

1. Name and Address:
   The full name and residential address of each new shareholder must be documented to establish ownership rights and enable effective communication.
2. Date(s) of Share Allotment:
   The specific date(s) on which the shares were allotted must be noted to maintain a chronological record of ownership changes.
3. Class and Quantity of Shares Held:
   The type of shares (e.g., ordinary, preference) and the total number of shares allotted to each shareholder must be clearly specified to distinguish between different categories of equity.
4. Amount Paid or Agreed to be Paid:
   The total amount paid or the amount that the shareholder has agreed to pay for each share needs to be detailed to reflect the financial commitment made by the shareholders.

In the case of share transfers from one individual to another, the company is obligated to update its register of members with the following information, where applicable:

1. Name and Address of New Shareholder:
   The complete name and address of the person acquiring the shares must be documented to ensure proper recognition of the new shareholder.
2. Date(s) of Share Transfer:
   The exact date(s) when the transfer of shares occurred must be recorded to maintain an accurate timeline of share ownership.
3. Date(s) on Which Any Person Ceased to Be a Member:
   The date(s) on which any previous member relinquished their shares and ceased to be part of the company must also be included for clarity on membership history.
4. Updated Shareholdings:
   The current shareholdings of each member who has either acquired or transferred shares should be updated to reflect the latest ownership structure accurately.

It is important to note that the PSC register should only be modified when the issuance or transfer of shares prompts a change in the company’s information about individuals with significant control. This ensures that the register remains accurate and up-to-date in accordance with regulatory requirements.

Why would I not convert to electronic shares?

Shares that are held electronically will no longer be registered directly in your name, meaning your details won’t appear on the company’s shareholder register. While you will still be the beneficial owner, it’s important to check how this change may affect any income, shareholder perks, and other benefits you are entitled to.

Additionally, unlike physical share certificates, you might incur management fees for holding shares electronically on a provider’s platform. However, there are no charges for holding shares in the Coddan Portal. You can view all associated charges for more information.

Not all share certificates can be converted to electronic shares (lodged) because a company can only do so if they are CREST eligible and tradeable through their market partners. Other factors, such as corporate actions, may also render some share certificates ineligible for lodgement.

I have received paper share certificates as an inheritance; what steps should I take regarding them?

It is highly advisable to digitize paper share certificates and convert them into electronic shares. In 2022, the UK government officially announced its initiative to digitize these paper certificates and to cease the issuance of any new physical share certificates. This transition aims to improve the efficiency of share management and enhance security.

Following the recording of a death, you can sell the share certificates, provided they have been transferred into your name or the name of the executors managing the estate. To initiate this transfer, you must directly contact the registrar of the shares, who will guide you through their specific procedures and requirements.

Once the shares are registered in the name of an executor, they can be deposited into a Fund and Share Account through a lodgement process. This account simplifies managing the shares and facilitates future transactions. While the government has not set a specific deadline for the conversion of paper certificates to electronic formats, it is prudent to take action sooner rather than later. The advantages of electronic shares—such as enhanced security measures, increased transparency in transactions, and greater ease in managing investments—make this a worthwhile endeavor for any shareholder.