Introduction to this document

Alterations to share capital summary

Alterations to a company’s share capital that do not affect the number of shares in issue are relatively straightforward. Our summary explains why these changes might be necessary and how to carry them out.

Consolidation and subdivision

In a share consolidation several shares in a class are converted into one share. In a subdivision, the reverse occurs. These procedures might be necessary, for example, to tidy up shareholdings in preparation for another procedure such as a reduction of capital, to conform with the rest of the group after a company has merged with or been taken over by another company, or to ensure that shareholdings remain proportionate after a shareholder has left or joined the company.


The currency in which a company’s share capital is held can be changed with shareholder consent. This will probably involve some renominalisation to achieve shares in round amounts that are more practical to deal with.

Reconversion of stock into shares

Companies can no longer create new stock (bundles of shares). However, those with stock that was created before the law changed in 2009 can easily reconvert it back into shares.