Shares and share classes

Many companies have very simple share capital, but companies have the freedom to create different types of share. This checklist explains what shares are, the common types and why a company might want to create different classes.

Keep it simple

Many companies choose to keep their share capital simple. Some don’t go beyond the original subscriber shares, but usually a company will issue further shares after incorporation to reflect its ownership and management. This will be as far as many companies go, but it may be beneficial, or necessary, to create different types of share. This checklist runs through the basics on what shares are and the common types.