You might have multiple reasons for allotting new shares, such as including family members in your business. It’s also a way to raise finance for a business. A private company limited by shares can issue new shares in exchange for investment from new shareholders.
When do I need to submit my SH01 form?
A SH01 Form needs to be filed to Companies House within a month of the shares being allotted. This ensures that Companies House always have an accurate record of your shareholder structure, and how company ownership is divided by shares.
What information is needed for a SH01 Form?
It’s a good idea to round up all the information you’ll need to fill in the form before you get started. The SH01 Form generally requires:
Your company registration number
Type of shares allotted
Date of allotment
The currency of the shares e.g Sterling or Euro
Number of shares
The nominal value of shares
Amounts paid or unpaid per share
An updated statement of capital
You won’t need to include the new shareholders’ details in the SH01 Form, only the shares themselves. The shareholder information is included the next time you submit a confirmation statement. You can submit an early confirmation statement if new shareholders want to be recorded with Companies House sooner.
Allotting new shares to different share classes
A director usually has the power to allot new shares if the company has only one class of share. This is a simple case of coming to an agreement on the shares, and filling in the necessary paperwork.
However, if your company uses different classes of shares, things get a bit more complicated. A director can still create new shares, but will need to have permission to do so. Their permission will either be written as part of the articles of association, or it can be granted by a special resolution passed by the existing shareholders.
The articles of association and any existing shareholder agreements should also be checked before new shares can be issued. This is to check if existing shareholders have a right to new shares over a brand new shareholder.
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About The Author
I'm an AAT and ACA qualified Chartered Accountant with over 13 years experience working with businesses, contractors and sole traders. I also love watching live music, and quizzes!
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