Splitting shares means to decrease the nominal value per share. It can also involve splitting one share class into multiple share classes.

The important thing is to make sure the sum of the nominal value of the new shares equals the nominal value of the share(s) being split. Below are some examples:

  • 1 £1.00 share becomes 100 1p shares
  • 1 £1.00 share becomes 1 50p A share and 5 10p B shares
  • 3 £1.00 shares becomes 1 25p A share 1 25p B share 2 75p C shares and 5 20p D shares.

Fortunately, Inform Direct has logic to make sure you maintain the correct nominal value for the new shares.


1. Go to the 'Share Classes' tab and select the blue 'Share reorganisation' button.



2. Select 'Share Split' and 'Next' will start the Inform Direct 'Share Split' wizard.


Note: You must remember that Companies House still needs the paper form (SH02) following a share split. Inform Direct will populate the SH02 form you. All you need to do is sign it and send to CH.


3. Enter the 'Date of share split.' Here is an article with a template resolution for a share split.



4. If there is more than 1 share class, choose which class is to be split from the dropdown list - here Preference £1.00. Also enter the ratio of the split. Here 100 new shares will be issued for each 1 share in issue. You can add a second share class if required.



Note: You must split the shares into the same named share class during this process. If you need to change the share class for example from Ordinary to A ordinary.  You will need to do this first and then carry out the share split. Please refer to this guide on how to do this.


5. You will see how each share holders holding will be changed by the proposed split.


Before submitting the split you will be asked if approval is required, this allows you to create a summary document to be approved prior to creating the Companies House form. 

  

Note: The approval feature is only available to subscribers of the software. What are the benefits of subscribing to Inform Direct? Pay as you go users will skip straight to the step below.


   

Note: Once pending, the approval for the action can be completed from the company dashboard tab.


6. Once you have gained the required approval (if required) to complete the action you will see a summary screen for the action. 


Note: Since the Submit button is green, no message is sent to Companies House electronically.



7. You then must print and send the SH02 to Companies House. Inform Direct will also have prepared new share certificates following the split.


How do I print share certificates?


Note: After the transaction you are prompted to produce supporting documents: What documents are available when I split shares?