Welcome to BeerMoneyForum.com - BIGGEST MAKE MONEY FORUM ONLINE

[Blaka]

Changing a company's shares is a careful and regulated process. First the board suggests changes to the company's rules in a board resolution. This document explains what they want to change in the share structure.

After the board agrees, it's up to the shareholders. They get told about the changesusually in a meeting, and their agreement is rellyimportant. Depending on whats changing, specific majorities might be needed.

Once the shareholders say okay, the company has to fill out forms for Companies House, which is the official company registrar in the UK. These forms have all the details about the new shares and copies of the decisions made.

 

[IB DD]

There are times that a change in the share structure of a company is inevitable. That's why the law makes provision for it in the laws that govern corporate operations. Regulatory changes affecting an industry can force a company to change it's share structure. The important thing is that shareholders ratify it.

When once that is secured, the regulatory body would always approve it.