The most recently available shareholder list and statement of capital are imported when adding a company to Inform Direct. If a split has happened since that shareholder list, the shareholdings will need to be updated.
The first thing to identify is which process needs to be followed, see the 2 screenshots below to identify which is the relevant situation:
A. If the share class which you are splitting from, and the class which you are splitting in to show on separate lines under the Share classes tab, please see our guide How Do I Split Shares to Reconcile a Share Class
B. If the class is shown on just one line, with the pre-split shareholding and post-split total number of shares, please see the steps below in this guide.
1. Go to the Share classes tab and select Share reorganisation on the right-hand side. Then select the Share split option as shown below and click Next.
2. Enter the date of the split, this will be available on the SH02 form which has already been filed to Companies House. Click Next to continue.
3. The share split details default to splitting the existing share class, please select the drop-down box and pick Create new.
4. Selecting Create new will allow you to enter the pre-split position so the software has a trail of the transaction.
In the example below the original value was £1 per share, so £1 is entered as the Nominal Value.
At the bottom of that page it allows you enter what it was split Into, please enter the amount each 1 share was split to. In the example below it was 1 share split in to 1000 shares.
5. Pressing Next will bring you to a warning that the class is Unreconciled. As this is the action required to reconcile the class, please click proceed.
Note: If figure entered for the Into box does not add up to the nominal value of the shares, the software will not allow you to proceed.
6. A summary of the split will then be shown on screen to review, please check that it shows as expected before continuing,
7. An approval step will appear before completing the process for subscribers. This allows you to download a summary document to be approved before completing the action.
8. The final step will show a green submit button. Nothing is sent to Companies House from the process, it will only update Inform Direct and also give you the opportunity to produce an SH02 and supporting documents for if these had not already been created.
