{"id":176580,"date":"2022-10-07T13:37:25","date_gmt":"2022-10-07T12:37:25","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=176580"},"modified":"2025-07-02T00:38:53","modified_gmt":"2025-07-01T23:38:53","slug":"create-new-class-shares","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/","title":{"rendered":"How Do I Create a New Class of Shares in England?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">As a company shareholder, your shares entitle you to certain rights, such as the right to participate in shareholder meetings or receive dividends. Companies can issue different classes of shares, each with varied rights attached to them. Typically, companies issue preference and ordinary shares, though there are other kinds. If your company is looking to create a new class of shares, there are processes to follow. To help, this article will provide an overview of the rules surrounding the creation of <\/span><a href=\"https:\/\/legalvision.co.uk\/corporations\/classes-company-shares\/\"><span style=\"font-weight: 400\">different classes of share capital<\/span><\/a><span style=\"font-weight: 400\"> and the purpose of having different classes of shares.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Rights Attached to Shares<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Shares are certificates that indicate that the <\/span><a href=\"https:\/\/www.shareholderrights.co.uk\/rights-shareholder\/complete-list-shareholder-rights\"><span style=\"font-weight: 400\">holder has certain rights in a limited company<\/span><\/a><span style=\"font-weight: 400\">. There are three central rights that you can have in a company which are the right to:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">participate in shareholder meetings through voting;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">receive dividends; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">receive a portion of the proceeds arising from the sale of the company\u2019s assets following its wind-up (i.e. the value of the assets after you have met your liabilities).&nbsp;<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">The default position is that all shareholders in the same company are equally entitled to all three rights but based on the portion of the shares they own.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">An Example<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Consider the fictional company: CoCo Ltd.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><b>Name of Shareholder<\/b><\/p>\n<\/td><td>\n<p><b>Total Number of Shares<\/b><\/p>\n<\/td><td>\n<p><b>Name of Shareholders<\/b><\/p>\n<\/td><td>\n<p><b>Number of Shares Held (%)<\/b><\/p>\n<\/td><td>\n<p><b>Total Value of Assets Less Liabilities<\/b><\/p>\n<\/td><td>\n<p><b>Amount Declared in Most Recent Dividend Payment<\/b><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">CoCo Ltd<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">100<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">Karl<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">40 (40%)<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a31m<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3100,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Frederich&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">25 (25%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Rosa&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15 (15%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Herbert<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15 (15%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Walter&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">5 (5%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Guy&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">0 (0%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Terry<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">0 (0%)<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">In CoCo\u2019s case, each shareholder\u2019s position is as follows:<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><b>Shareholder<\/b><\/p>\n<\/td><td>\n<p><b>% of Voting Power&nbsp;<\/b><\/p>\n<\/td><td>\n<p><b>Portion of Dividend Owed<\/b><\/p>\n<\/td><td>\n<p><b>Portion of Proceeds of Sale of Assets in Wind-Up<\/b><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Karl<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">40%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a340,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3400,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Frederich&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">25%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a325,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3250,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Rosa&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Herbert<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Walter&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">5%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a35,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a35,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Guy&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">0%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a30<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a30<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Terry<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">0%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a30<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a30<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n    <div class=\"my-7 lg:my-10 border-y-2 border-gray-100 py-7 lg:py-10 flex flex-col sm:flex-row items-start gap-10\">\n                    <img decoding=\"async\" class=\"w-52 mx-auto my-0! rounded\" src=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/09\/06164254\/uk-startup-manual-290x410-1.jpg\" alt=\"Front page of publication\"\n                 loading=\"lazy\" width=\"208\" height=\"298\">\n                <section>\n            <div class=\"text-2xl font-bold\">UK Startup Manual<\/div>\n            <div class=\"body-text\">\n                <p>LegalVision&#8217;s Startup Manual is essential reading material for any startup founder looking to launch and grow a successful startup.<\/p>\n            <\/div>\n            \n\n<a href=\"https:\/\/go.legalvision.co.uk\/uk-startup-manual.html\" class=\" block px-5 py-3.5 max-w-fit bg-orange button__hover transition rounded text-white font-bold text-lg no-underline uppercase leading-tight text-center\" target=\"\" rel=\"\">Download Now<\/a>        <\/section>\n    <\/div>\n\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" class=\"not-prose\">0808 196 8584<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left gform_input_bg_white    \">\n    <script>\nvar gform;gform||(document.addEventListener(\"gform_main_scripts_loaded\",function(){gform.scriptsLoaded=!0}),document.addEventListener(\"gform\/theme\/scripts_loaded\",function(){gform.themeScriptsLoaded=!0}),window.addEventListener(\"DOMContentLoaded\",function(){gform.domLoaded=!0}),gform={domLoaded:!1,scriptsLoaded:!1,themeScriptsLoaded:!1,isFormEditor:()=>\"function\"==typeof InitializeEditor,callIfLoaded:function(o){return!(!gform.domLoaded||!gform.scriptsLoaded||!gform.themeScriptsLoaded&&!gform.isFormEditor()||(gform.isFormEditor()&&console.warn(\"The use of gform.initializeOnLoaded() is deprecated in the form editor context and will be removed in Gravity Forms 3.1.\"),o(),0))},initializeOnLoaded:function(o){gform.callIfLoaded(o)||(document.addEventListener(\"gform_main_scripts_loaded\",()=>{gform.scriptsLoaded=!0,gform.callIfLoaded(o)}),document.addEventListener(\"gform\/theme\/scripts_loaded\",()=>{gform.themeScriptsLoaded=!0,gform.callIfLoaded(o)}),window.addEventListener(\"DOMContentLoaded\",()=>{gform.domLoaded=!0,gform.callIfLoaded(o)}))},hooks:{action:{},filter:{}},addAction:function(o,r,e,t){gform.addHook(\"action\",o,r,e,t)},addFilter:function(o,r,e,t){gform.addHook(\"filter\",o,r,e,t)},doAction:function(o){gform.doHook(\"action\",o,arguments)},applyFilters:function(o){return gform.doHook(\"filter\",o,arguments)},removeAction:function(o,r){gform.removeHook(\"action\",o,r)},removeFilter:function(o,r,e){gform.removeHook(\"filter\",o,r,e)},addHook:function(o,r,e,t,n){null==gform.hooks[o][r]&&(gform.hooks[o][r]=[]);var d=gform.hooks[o][r];null==n&&(n=r+\"_\"+d.length),gform.hooks[o][r].push({tag:n,callable:e,priority:t=null==t?10:t})},doHook:function(r,o,e){var t;if(e=Array.prototype.slice.call(e,1),null!=gform.hooks[r][o]&&((o=gform.hooks[r][o]).sort(function(o,r){return o.priority-r.priority}),o.forEach(function(o){\"function\"!=typeof(t=o.callable)&&(t=window[t]),\"action\"==r?t.apply(null,e):e[0]=t.apply(null,e)})),\"filter\"==r)return e[0]},removeHook:function(o,r,t,n){var e;null!=gform.hooks[o][r]&&(e=(e=gform.hooks[o][r]).filter(function(o,r,e){return!!(null!=n&&n!=o.tag||null!=t&&t!=o.priority)}),gform.hooks[o][r]=e)}});\n<\/script>\n\n                <div class='gf_browser_chrome gform_wrapper gravity-theme gform-theme--no-framework lawyer-form_wrapper gplaceholder_wrapper form-with-labels-no-asterisks_wrapper has-new-validation-error-styling_wrapper' data-form-theme='gravity-theme' data-form-index='0' id='gform_wrapper_2453' style='display:none'><div id='gf_2453' class='gform_anchor' tabindex='-1'><\/div><form method='post' enctype='multipart\/form-data' target='gform_ajax_frame_2453' id='gform_2453' class='lawyer-form gplaceholder form-with-labels-no-asterisks has-new-validation-error-styling' action='\/api\/wp\/v2\/posts\/176580#gf_2453' data-formid='2453' novalidate>\n                        <div class='gform-body gform_body'><div id='gform_fields_2453' class='gform_fields top_label form_sublabel_below description_below validation_below'><div id=\"field_2453_1000\" class=\"gfield gfield--type-honeypot gform_validation_container field_sublabel_below gfield--has-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_1000'>LinkedIn<\/label><div class='ginput_container'><input name='input_1000' id='input_2453_1000' type='text' value='' autocomplete='new-password'\/><\/div><div class='gfield_description' id='gfield_description_2453_1000'>This field is for validation purposes and should be left unchanged.<\/div><\/div><div id=\"field_2453_1\" class=\"gfield gfield--type-text gfield--input-type-text gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_1'>First Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_1' id='input_2453_1' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_12\" class=\"gfield gfield--type-text gfield--input-type-text gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_12'>Last Name<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_text'><input name='input_12' id='input_2453_12' type='text' value='' class='medium'     aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_2\" class=\"gfield gfield--type-email gfield--input-type-email gf_left_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_2'>Email Address<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_email'>\n                            <input name='input_2' id='input_2453_2' type='email' value='' class='medium'    aria-required=\"true\" aria-invalid=\"false\"  \/>\n                        <\/div><\/div><div id=\"field_2453_3\" class=\"gfield gfield--type-phone gfield--input-type-phone gf_right_half gfield--width-half gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_3'>Phone<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_phone'><input name='input_3' id='input_2453_3' type='tel' value='' class='medium'   aria-required=\"true\" aria-invalid=\"false\"   \/><\/div><\/div><div id=\"field_2453_14\" class=\"gfield gfield--type-select gfield--input-type-select gfield--width-full custom-select gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_14'>Number of Employees in Your Business<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_select'><select name='input_14' id='input_2453_14' class='large gfield_select'    aria-required=\"true\" aria-invalid=\"false\" ><option value='' selected='selected'>Select ...<\/option><option value='0' >0<\/option><option value='1' >1-5<\/option><option value='6' >6-20<\/option><option value='21' >21-50<\/option><option value='51' >51-250<\/option><option value='250' >250+<\/option><\/select><\/div><\/div><div id=\"field_2453_4\" class=\"gfield gfield--type-textarea gfield--input-type-textarea gfield_contains_required field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><label class='gfield_label gform-field-label' for='input_2453_4'>Tell us about your enquiry<span class=\"gfield_required\"><span class=\"gfield_required gfield_required_text\">(Required)<\/span><\/span><\/label><div class='ginput_container ginput_container_textarea'><textarea name='input_4' id='input_2453_4' class='textarea medium'     aria-required=\"true\" aria-invalid=\"false\"   rows='10' cols='50'><\/textarea><\/div><\/div><div id=\"field_2453_5\" class=\"gfield gfield--type-html gfield--input-type-html gfield_html gfield_html_formatted gfield_no_follows_desc field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  >By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. View our <a href=\"https:\/\/legalvision.co.uk\/privacy-notice\/\" target=\"_blank\">Privacy Policy<\/a>. <\/div><div id=\"field_2453_8\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_8' id='input_2453_8' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='http:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/176580' \/><\/div><\/div><div id=\"field_2453_13\" class=\"gfield gfield--type-hidden gfield--input-type-hidden gform_hidden field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><div class='ginput_container ginput_container_text'><input name='input_13' id='input_2453_13' type='hidden' class='gform_hidden'  aria-invalid=\"false\" value='generic_form' \/><\/div><\/div><fieldset id=\"field_2453_999\" class=\"gfield gfield--type-checkbox gfield--type-choice gfield__uk-marketo-opt-in field_sublabel_below gfield--no-description field_description_below field_validation_below gfield_visibility_visible\"  ><legend class='gfield_label gform-field-label screen-reader-text' ><\/legend><div class='ginput_container ginput_container_checkbox'><div class='gfield_checkbox ' id='input_2453_999'><div class='gchoice gchoice_2453_999_1'>\n\t\t\t\t\t\t\t\t<input class='gfield-choice-input' name='input_999.1' type='checkbox'  value='1'  id='choice_2453_999_1'   \/>\n\t\t\t\t\t\t\t\t<label for='choice_2453_999_1' id='label_2453_999_1' class='gform-field-label gform-field-label--type-inline'>By submitting this form, you agree to receive content and event invitations from us to help you grow your business. If you do not want to receive such messages, tick here.<\/label>\n\t\t\t\t\t\t\t<\/div><\/div><\/div><\/fieldset><\/div><\/div>\n        <div class='gform-footer gform_footer top_label'> <button type=\"submit\" id=\"gform_submit_button_2453\" class=\"gform_button button\" onclick=\"gform.submission.handleButtonClick(this);\" data-submission-type=\"submit\"><span class=\"gform_submit_button__text\">Submit Now<\/span><\/button> <input type='hidden' name='gform_ajax' value='form_id=2453&amp;title=&amp;description=&amp;tabindex=0&amp;theme=gravity-theme&amp;hash=ec2463697d0d9cef7b71236ae60964c7' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submission_method' data-js='gform_submission_method_2453' value='iframe' \/>\n            <input type='hidden' class='gform_hidden' name='gform_theme' data-js='gform_theme_2453' id='gform_theme_2453' value='gravity-theme' \/>\n            <input type='hidden' class='gform_hidden' name='gform_style_settings' data-js='gform_style_settings_2453' id='gform_style_settings_2453' value='' \/>\n            <input type='hidden' class='gform_hidden' name='is_submit_2453' value='1' \/>\n            <input type='hidden' class='gform_hidden' name='gform_submit' value='2453' \/>\n            \n            <input type='hidden' class='gform_hidden' name='gform_currency' data-currency='GBP' value='bZBpCWF+e+dvdSHO0JUKMBic1FyguOqZa\/K1rIFNRl4+Zu7HkEDAkRxdJRFhmbRfDW9Z4slf6kiNggCPA\/hfapVSFTyaW40+yux0Vrjpmc7LlU8=' \/>\n            <input type='hidden' class='gform_hidden' name='gform_unique_id' value='' \/>\n            <input type='hidden' class='gform_hidden' name='state_2453' value='WyJ7XCIxNFwiOltcIjIyODY0N2ViMWU3NTcxZjA4YTY4NGJmMDcwMTk3Y2I0XCIsXCJiMzk3YmQ1MDBmMmFjNjk1ODE4MzdmNTBhYTA2MzQ0OFwiLFwiNGYyNGZkZGEwMzlkNDUxMWFhZGE1NGYwZmQwZmNiZTdcIixcIjUyMmJkMDE2M2I2ZmEwOTI3NDZhZjU5YTg0ZmM1NDk5XCIsXCIzODRlNjk1YjQxMTAzMWFiYmQ2ODEyMGYyZWFhMDYyNlwiLFwiYjkzNDcwNTE2MjkxOGRjZWViMjQzNzRjNmE0NGVmNTlcIixcIjQxMTliODZhMzVjYzJiMWViNDZiMmQ4NjRlNGUzZmNjXCJdfSIsIjQ3MjNiMzA2ZDIyZGVkODA2N2YyMjYyOThkYzI1ODVmIl0=' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_target_page_number_2453' id='gform_target_page_number_2453' value='0' \/>\n            <input type='hidden' autocomplete='off' class='gform_hidden' name='gform_source_page_number_2453' id='gform_source_page_number_2453' value='1' \/>\n            <input type='hidden' name='gform_field_values' value='' \/>\n            \n        <\/div>\n                        <\/form>\n                        <\/div>\n\t\t                <iframe style='display:none;width:0px;height:0px;' src='about:blank' name='gform_ajax_frame_2453' id='gform_ajax_frame_2453' title='This iframe contains the logic required to handle Ajax powered Gravity Forms.'><\/iframe>\n\t\t                <script>\ngform.initializeOnLoaded( function() {gformInitSpinner( 2453, 'https:\/\/legalvision.co.uk\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery('#gform_ajax_frame_2453').on('load',function(){var contents = jQuery(this).contents().find('*').html();var is_postback = contents.indexOf('GF_AJAX_POSTBACK') >= 0;if(!is_postback){return;}var form_content = jQuery(this).contents().find('#gform_wrapper_2453');var is_confirmation = jQuery(this).contents().find('#gform_confirmation_wrapper_2453').length > 0;var is_redirect = contents.indexOf('gformRedirect(){') >= 0;var is_form = form_content.length > 0 && ! is_redirect && ! is_confirmation;var mt = parseInt(jQuery('html').css('margin-top'), 10) + parseInt(jQuery('body').css('margin-top'), 10) + 100;if(is_form){form_content.find('form').css('opacity', 0);jQuery('#gform_wrapper_2453').html(form_content.html());if(form_content.hasClass('gform_validation_error')){jQuery('#gform_wrapper_2453').addClass('gform_validation_error');} else {jQuery('#gform_wrapper_2453').removeClass('gform_validation_error');}setTimeout( function() { \/* delay the scroll by 50 milliseconds to fix a bug in chrome *\/ jQuery(document).scrollTop(jQuery('#gform_wrapper_2453').offset().top - mt); }, 50 );if(window['gformInitDatepicker']) {gformInitDatepicker();}if(window['gformInitPriceFields']) {gformInitPriceFields();}var current_page = jQuery('#gform_source_page_number_2453').val();gformInitSpinner( 2453, 'https:\/\/legalvision.co.uk\/wp-content\/themes\/legalv-v6\/img\/spinner.svg', true );jQuery(document).trigger('gform_page_loaded', [2453, current_page]);window['gf_submitting_2453'] = false;}else if(!is_redirect){var confirmation_content = jQuery(this).contents().find('.GF_AJAX_POSTBACK').html();if(!confirmation_content){confirmation_content = contents;}jQuery('#gform_wrapper_2453').replaceWith(confirmation_content);jQuery(document).scrollTop(jQuery('#gf_2453').offset().top - mt);jQuery(document).trigger('gform_confirmation_loaded', [2453]);window['gf_submitting_2453'] = false;wp.a11y.speak(jQuery('#gform_confirmation_message_2453').text());}else{jQuery('#gform_2453').append(contents);if(window['gformRedirect']) {gformRedirect();}}jQuery(document).trigger(\"gform_pre_post_render\", [{ formId: \"2453\", currentPage: \"current_page\", abort: function() { this.preventDefault(); } }]);        if (event && event.defaultPrevented) {                return;        }        const gformWrapperDiv = document.getElementById( \"gform_wrapper_2453\" );        if ( gformWrapperDiv ) {            const visibilitySpan = document.createElement( \"span\" );            visibilitySpan.id = \"gform_visibility_test_2453\";            gformWrapperDiv.insertAdjacentElement( \"afterend\", visibilitySpan );        }        const visibilityTestDiv = document.getElementById( \"gform_visibility_test_2453\" );        let postRenderFired = false;        function triggerPostRender() {            if ( postRenderFired ) {                return;            }            postRenderFired = true;            gform.core.triggerPostRenderEvents( 2453, current_page );            if ( visibilityTestDiv ) {                visibilityTestDiv.parentNode.removeChild( visibilityTestDiv );            }        }        function debounce( func, wait, immediate ) {            var timeout;            return function() {                var context = this, args = arguments;                var later = function() {                    timeout = null;                    if ( !immediate ) func.apply( context, args );                };                var callNow = immediate && !timeout;                clearTimeout( timeout );                timeout = setTimeout( later, wait );                if ( callNow ) func.apply( context, args );            };        }        const debouncedTriggerPostRender = debounce( function() {            triggerPostRender();        }, 200 );        if ( visibilityTestDiv && visibilityTestDiv.offsetParent === null ) {            const observer = new MutationObserver( ( mutations ) => {                mutations.forEach( ( mutation ) => {                    if ( mutation.type === 'attributes' && visibilityTestDiv.offsetParent !== null ) {                        debouncedTriggerPostRender();                        observer.disconnect();                    }                });            });            observer.observe( document.body, {                attributes: true,                childList: false,                subtree: true,                attributeFilter: [ 'style', 'class' ],            });        } else {            triggerPostRender();        }    } );} );\n<\/script>\n<\/div>\n<\/div>\n<div id=\"content-next\"><!-- scroll anchor --><\/div>\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Differing Rights&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The law states that all shares of the same class must have the same rights attached to each share of that class. Similarly, the law will recognise all shares as being of the same class if the rights attached to the shares are the same, regardless of if you treat them as different classes.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">This means that if Guy and Terry wanted to become shareholders, but only on the condition that they obtain first choice on all dividends paid, CoCo would need to issue them a different class of shares. This is because the rights attached to the ordinary shares require that CoCo treat all shareholders of the same class of shares equally.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The most likely reason CoCo would want to<\/span><a href=\"https:\/\/legalvision.co.uk\/corporations\/issue-shares-limited-company\/\"><span style=\"font-weight: 400\"> issue different shares<\/span><\/a><span style=\"font-weight: 400\"> to Guy and Terry is that they are prepared to invest money in CoCo.The exact nature of the rights attached to the shares depends entirely on the outcome of any such negotiations.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">An example:<\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Guy and Terry give CoCo Ltd \u00a31m in cash in exchange for 50 shares each;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">for any dividend declared, Gury and Terry get \u00a32 for every \u00a31 given to the original shareholders;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">in the event CoCo is wound up, Guy and Terry are entitled to the first \u00a31m arising from the proceeds of the sale of the company\u2019s assets; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Guy and Terry have no voting rights.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">In the next quarter, CoCo\u2019s position would be as follows.&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><b>Name of Shareholder<\/b><\/p>\n<\/td><td>\n<p><b>Total Number of Shares<\/b><\/p>\n<\/td><td>\n<p><b>Name of Shareholders<\/b><\/p>\n<\/td><td>\n<p><b>Number of Shares Held (%)<\/b><\/p>\n<\/td><td>\n<p><b>Total Value of Assets Less Liabilities<\/b><\/p>\n<\/td><td>\n<p><b>Amount Declared in Most Recent Dividend Payment<\/b><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">CoCo Ltd<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">200<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">Karl<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">40 (20%)<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a32m<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3200,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Frederich&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">25 (12.5%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Rosa&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15 (7.5%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Herbert<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15 (7.5%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Walter&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">5 (2.5%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Guy&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">50 (25%)<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Terry<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">50 (25%)<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">Each shareholder\u2019s position is as follows:&nbsp;<\/span><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>\n<p><b>Shareholder<\/b><\/p>\n<\/td><td>\n<p><b>% of Voting P<\/b><\/p>\n<p><b>ower&nbsp;<\/b><\/p>\n<\/td><td>\n<p><b>Portion of Dividend Owed<\/b><\/p>\n<\/td><td>\n<p><b>Portion of Proceeds of Sale of Assets in Wind-Up<\/b><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Karl<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">40%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a340,000<\/span><\/p>\n<p><span style=\"font-weight: 400\">&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3400,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Frederich&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">25%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a325,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3250,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Rosa&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Herbert<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">15%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a315,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Walter&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">5%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a35,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a35,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Guy&nbsp;<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">0%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a350,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3500,000<\/span><\/p>\n<\/td><\/tr><tr><td>\n<p><span style=\"font-weight: 400\">Terry<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">0%<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a350,000<\/span><\/p>\n<\/td><td>\n<p><span style=\"font-weight: 400\">\u00a3500,000<\/span><\/p>\n<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><span style=\"font-weight: 400\">Guy and Terry want different rights in the company compared to the original shareholders. A new class of shares must be issued to give effect to these rights. Otherwise, if you issue more ordinary shares, you would prejudice the current shareholders, as CoCo is treating the new shareholders differently.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Creating a New Class of Shares&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">There are two ways to create a new class of shares:<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">allot a new class of shares (as in our above example); or&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">convert existing shares into a new class.<\/span><\/li><\/ol>\n\n\n\n<p><span style=\"font-weight: 400\">The exact nature depends on the company\u2019s constitution. However, there are some general rules all companies will likely need to follow.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Allotment&nbsp;<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Constitutional Authority&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">You must first check that there are no restrictions in the company\u2019s constitution on allotting new shares in general or new shares of a new class.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If there is, the company must amend its constitution through a special resolution. Otherwise, any attempt to create a new class will be ineffective.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Passing Resolution&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">CoCo\u2019s directors need to give the shareholders a resolution granting them the power to allot a new class of shares. Unless otherwise stated, an ordinary resolution will be sufficient. In practice, the ordinary resolution should specify the rights attached to the newly issued shares.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">While not always necessary, you may wish to amend the articles of association to determine the exact rights associated with each class of shares.&nbsp;<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Pre-Emption Rights<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">In some cases, the law of pre-emption might apply. This ensures that existing shareholders can subscribe for a portion of the newly allotted shares that would preserve their portion of ownership in the company. You should speak to a solicitor to ensure you comply with all relevant laws relating to pre-emption rights and that you follow your company\u2019s constitution.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Converting Existing Shares<\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Passing a Resolution&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">The directors will need to present a resolution to the shareholders that dictate:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">which shares the company will convert;&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">what you will call the shares; and&nbsp;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">the rights attached to this new class of shares.&nbsp;<\/span><\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Obtaining Class Consent&nbsp;<\/span><\/h3>\n\n\n\n<p><span style=\"font-weight: 400\">If there are already different classes of shares in existence and only one class of shares is changing, you must obtain the consent of that class in particular.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Post-Allotment Requirements&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">For both an allotment and conversion, certain information, including copies of the resolutions passed and details of the rights attached to the new class of shares, must be supplied to Companies House. The deadlines vary between 15 and 30 days, depending on the circumstances.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Kinds of Share Classes<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">You may find it helpful to know that the law does not recognise the rights attached to shares based on their name. Therefore, you can call your shares whatever you want to call them. This is why a company may have Class A, B, and C shares. They are alphabet shares because the name says nothing about the rights attached to them.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">At the same time, you may hear references to terms like <\/span><a href=\"https:\/\/legalvision.co.uk\/corporations\/ordinary-redeemable-preference-shares\/\"><span style=\"font-weight: 400\">preference shares<\/span><\/a><span style=\"font-weight: 400\">, non-voting shares, and convertible shares. These have specific rights attached to them.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways&nbsp;<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">To create a new class of shares or to convert existing shares into a new class, you must follow the rules set out in your company\u2019s constitution. For most companies, this involves the directors putting a resolution to the shareholders authorising the allotment or conversion. If the company\u2019s articles prohibit the allotment of new classes of shares, you must amend the constitution through a special resolution. The directors then need to deliver certain documents to Companies House.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help creating a new class of shares in England, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/corporate-lawyers-lp\/\"><span style=\"font-weight: 400\">commercial lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today at <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1665145298710\"><strong class=\"schema-faq-question\"><strong>What is a new class of shares?<\/strong><\/strong> <p class=\"schema-faq-answer\">A class of shares is any number of shares with the same rights and privileges attached to them in terms of voting and rights to dividends and capital upon winding up. If you wish for some shareholders to have rights that differ from others, you must create a new class of shares.\u00a0<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1665145318216\"><strong class=\"schema-faq-question\"><br\/><strong>What is the process of creating a new class of shares?<\/strong><\/strong> <p class=\"schema-faq-answer\">The shareholders must authorise it via a resolution and in accordance with the company\u2019s constitution. The directors must follow specific laws related to pre-emption rights and file the relevant particulars with Companies House.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/176580\" \/>            <input value=\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"How Do I Create a New Class of Shares in England?\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>As a company shareholder, your shares entitle you to certain rights, such as the right to participate in shareholder meetings or receive dividends. Companies can issue different classes of shares, each with varied rights attached to them. Typically, companies issue preference and ordinary shares, though there are other kinds. If your company is looking to<a href=\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\">Continue reading <span class=\"sr-only\">&#8220;How Do I Create a New Class of Shares in England?&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13522,"featured_media":3182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"176457,174852,174935,172627,172122,1443","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[28],"tags":[20,97,343,531],"class_list":["post-176580","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporations","tag-small-business","tag-issue-shares","tag-classes-of-shares","tag-shares"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>How Do I Create a New Class Shares | LegalVision UK<\/title>\n<meta name=\"description\" content=\"As a business owner, you may decide to create a new class of shares for your company. In our article, we explain all about this.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Do I Create a New Class Shares | LegalVision UK\" \/>\n<meta property=\"og:description\" content=\"As a business owner, you may decide to create a new class of shares for your company. In our article, we explain all about this.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\" \/>\n<meta property=\"og:site_name\" content=\"LegalVision UK\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/LegalVision\" \/>\n<meta property=\"article:published_time\" content=\"2022-10-07T12:37:25+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-07-01T23:38:53+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"963\" \/>\n\t<meta property=\"og:image:height\" content=\"642\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Tom Khalid\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:site\" content=\"@LegalVision_law\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Tom Khalid\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\"},\"author\":{\"name\":\"Tom Khalid\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/332997a5c4d417d6c77f819e0d496113\"},\"headline\":\"How Do I Create a New Class of Shares in England?\",\"datePublished\":\"2022-10-07T12:37:25+00:00\",\"dateModified\":\"2025-07-01T23:38:53+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\"},\"wordCount\":1396,\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg\",\"keywords\":[\"small business\",\"issue shares\",\"classes of shares\",\"shares\"],\"articleSection\":[\"Corporate Articles\"],\"inLanguage\":\"en-GB\"},{\"@type\":[\"WebPage\",\"FAQPage\"],\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\",\"url\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\",\"name\":\"How Do I Create a New Class Shares | LegalVision UK\",\"isPartOf\":{\"@id\":\"https:\/\/legalvision.co.uk\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg\",\"datePublished\":\"2022-10-07T12:37:25+00:00\",\"dateModified\":\"2025-07-01T23:38:53+00:00\",\"author\":{\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/332997a5c4d417d6c77f819e0d496113\"},\"description\":\"As a business owner, you may decide to create a new class of shares for your company. In our article, we explain all about this.\",\"breadcrumb\":{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#breadcrumb\"},\"mainEntity\":[{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145298710\"},{\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145318216\"}],\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage\",\"url\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg\",\"contentUrl\":\"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg\",\"width\":963,\"height\":642,\"caption\":\"Applying the Landlord and Tenant Act 1954 | LegalVision UK\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/legalvision.co.uk\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Corporate Articles\",\"item\":\"https:\/\/legalvision.co.uk\/category\/corporations\/\"},{\"@type\":\"ListItem\",\"position\":3,\"name\":\"How Do I Create a New Class of Shares in England?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/legalvision.co.uk\/#website\",\"url\":\"https:\/\/legalvision.co.uk\/\",\"name\":\"LegalVision UK\",\"description\":\"LegalVision is a commercial law firm in the UK with a commitment to innovation\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/legalvision.co.uk\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/332997a5c4d417d6c77f819e0d496113\",\"name\":\"Tom Khalid\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/07\/Tom-4593-scaled-e1753433067527-96x96.jpg\",\"contentUrl\":\"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/07\/Tom-4593-scaled-e1753433067527-96x96.jpg\",\"caption\":\"Tom Khalid\"},\"description\":\"Tom is a trainee solicitor at LegalVision.\",\"url\":\"https:\/\/legalvision.co.uk\/author\/tomkhalid\/\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145298710\",\"name\":\"What is a new class of shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"A class of shares is any number of shares with the same rights and privileges attached to them in terms of voting and rights to dividends and capital upon winding up. If you wish for some shareholders to have rights that differ from others, you must create a new class of shares.\u00a0\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"},{\"@type\":\"Question\",\"@id\":\"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145318216\",\"name\":\"What is the process of creating a new class of shares?\",\"acceptedAnswer\":{\"@type\":\"Answer\",\"text\":\"The shareholders must authorise it via a resolution and in accordance with the company\u2019s constitution. The directors must follow specific laws related to pre-emption rights and file the relevant particulars with Companies House.\u00a0\",\"inLanguage\":\"en-GB\"},\"inLanguage\":\"en-GB\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"How Do I Create a New Class Shares | LegalVision UK","description":"As a business owner, you may decide to create a new class of shares for your company. In our article, we explain all about this.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/","og_locale":"en_GB","og_type":"article","og_title":"How Do I Create a New Class Shares | LegalVision UK","og_description":"As a business owner, you may decide to create a new class of shares for your company. In our article, we explain all about this.","og_url":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/","og_site_name":"LegalVision UK","article_publisher":"https:\/\/www.facebook.com\/LegalVision","article_published_time":"2022-10-07T12:37:25+00:00","article_modified_time":"2025-07-01T23:38:53+00:00","og_image":[{"width":963,"height":642,"url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg","type":"image\/jpeg"}],"author":"Tom Khalid","twitter_card":"summary_large_image","twitter_creator":"@LegalVision_law","twitter_site":"@LegalVision_law","twitter_misc":{"Written by":"Tom Khalid","Est. reading time":"7 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#article","isPartOf":{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/"},"author":{"name":"Tom Khalid","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/332997a5c4d417d6c77f819e0d496113"},"headline":"How Do I Create a New Class of Shares in England?","datePublished":"2022-10-07T12:37:25+00:00","dateModified":"2025-07-01T23:38:53+00:00","mainEntityOfPage":{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/"},"wordCount":1396,"image":{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg","keywords":["small business","issue shares","classes of shares","shares"],"articleSection":["Corporate Articles"],"inLanguage":"en-GB"},{"@type":["WebPage","FAQPage"],"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/","url":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/","name":"How Do I Create a New Class Shares | LegalVision UK","isPartOf":{"@id":"https:\/\/legalvision.co.uk\/#website"},"primaryImageOfPage":{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage"},"image":{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage"},"thumbnailUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg","datePublished":"2022-10-07T12:37:25+00:00","dateModified":"2025-07-01T23:38:53+00:00","author":{"@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/332997a5c4d417d6c77f819e0d496113"},"description":"As a business owner, you may decide to create a new class of shares for your company. In our article, we explain all about this.","breadcrumb":{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145298710"},{"@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145318216"}],"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2022\/05\/24121913\/business-image-0522123.jpg","width":963,"height":642,"caption":"Applying the Landlord and Tenant Act 1954 | LegalVision UK"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Corporate Articles","item":"https:\/\/legalvision.co.uk\/category\/corporations\/"},{"@type":"ListItem","position":3,"name":"How Do I Create a New Class of Shares in England?"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to innovation","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/332997a5c4d417d6c77f819e0d496113","name":"Tom Khalid","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/07\/Tom-4593-scaled-e1753433067527-96x96.jpg","contentUrl":"https:\/\/legalvision.co.uk\/wp-content\/uploads\/sites\/4\/2024\/07\/Tom-4593-scaled-e1753433067527-96x96.jpg","caption":"Tom Khalid"},"description":"Tom is a trainee solicitor at LegalVision.","url":"https:\/\/legalvision.co.uk\/author\/tomkhalid\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145298710","name":"What is a new class of shares?","acceptedAnswer":{"@type":"Answer","text":"A class of shares is any number of shares with the same rights and privileges attached to them in terms of voting and rights to dividends and capital upon winding up. If you wish for some shareholders to have rights that differ from others, you must create a new class of shares.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/corporations\/create-new-class-shares\/#faq-question-1665145318216","name":"What is the process of creating a new class of shares?","acceptedAnswer":{"@type":"Answer","text":"The shareholders must authorise it via a resolution and in accordance with the company\u2019s constitution. The directors must follow specific laws related to pre-emption rights and file the relevant particulars with Companies House.\u00a0","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/176580","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13522"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=176580"}],"version-history":[{"count":12,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/176580\/revisions"}],"predecessor-version":[{"id":177760,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/176580\/revisions\/177760"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/3182"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=176580"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=176580"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=176580"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}