This guide is for Limited companies cancelling or repaying shares, if you are looking to create an SH19 for another type of company or reason please see the guides below.


1. The first thing you need to do is click on the Share reorganisation button, this can be found on the Share class's tab.


You will then need to select Share capital reduction. 


2. Next, you will need to enter the date of the reduction. For a PLC a court order has to be obtained, this is defaulted to yes. 


 Note: Do not proceed unless you have obtained the court order, the directors have given a statement of solvency and the share holders have passed a special resolution.



3. You will then be presented with two different screens depending on if the shares are unpaid or paid. If you need to amend the amount view this guide: How do I amend the amounts paid / unpaid?


Note: If the the reduction in share capital was completed by a combination of cancelling/repaying shares and reducing the nominal value of the share class, you will need to carry out wizard once for each method.


If the shares are fully paid you will see the below, you can then enter the nominal value after the reduction.



If the shares are unpaid the below screen will be shown.


Note: Here you are confirming that you are reducing the nominal value of the class by cancelling any unpaid nominal value.



4. Before submitting the action 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. 


5. On the summary page you will see all the details you have entered, before the documentation is created.



5.  The SH19 will then be created once the details have been confirmed. 


You can also choose to create additional documentation if you wish:

  • Board minutes for recommending share capital reduction
  • Directors compliance statement for share capital reduction
  • Directors solvency statement
  • Shareholders' resolution to approve share capital reduction via a meeting
  • Written shareholders' resolution to approve a share capital reduction


Note: These documents are not submitted to Companies House electronically, any that are required to be sent will need to be done so by post. A fee is payable to Companies House to reduce the share capital by Court Order or by Solvency Statement. 


Note: Following any share reorganisation it is often helpful to file a confirmation statement to provide an updated shareholder list to Companies House. Why might I file a Confirmation Statement early?