share consolidation

share consolidation
For various reasons a company may wish to consolidate its share capital by combining shares into units, for example consolidating 10p shares into ₤1 shares by combining each set of ten 10p shares held by the shareholder into one ₤1 share. This only works if the mathematics are right; you cannot be left with fractions. Subdivision is the opposite process. In each case, under the Companies Act 1985, the change is carried out by ordinary resolution and details must be filed at the Companies Registry.

Easyform Glossary of Law Terms. — UK law terms.

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