Multiple Share Classes

We recommend that multiple share class options be considered if the shareholders of a UK limited company need to have different rights as regards voting, dividends, payment of surplus funds on winding up the company, and the issue and transfer of shares. You may wish to create A and B shares so that shareholders can be paid different dividends, create class B shares to give to employees, give some shareholders non-voting shares or use different types of share classes to determine how capital rights are dealt with on winding up of the company.

Please note that if the company has a share capital made up of Ordinary shares only, all shareholders remain equal as regards the rights attached to their shares.

If you require any variation on the share rights options (e.g you wish to include preference shares or redeemable shares, etc), or any further information or assistance regarding A & B shares, please contact us on 0131 557 6966. Please note that variations on these options may incur additional fees.

Important note: Independent professional advice should be sought on the taxation consequences of creating shares with differing class rights.

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