{"id":10703,"date":"2023-09-27T20:15:56","date_gmt":"2023-09-27T19:15:56","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=10703"},"modified":"2024-05-17T15:39:34","modified_gmt":"2024-05-17T14:39:34","slug":"issue-multiple-share-classes","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/issue-multiple-share-classes\/","title":{"rendered":"How to issue multiple share classes when setting up a company"},"content":{"rendered":"

The vast majority of new companies are set up with a single class of shares known as \u2018ordinary\u2019 shares. This class provides equal voting and dividend rights to all shareholders, proportional to the number of shares they hold. However, if you want to vary the rights of shareholders, you can issue multiple share classes when setting up a company (or at any time thereafter).\u00a0<\/span><\/p>\n

In this post, we explain the reasons why some companies issue different types of shares, before going on to discuss the steps required to form a company with multiple share classes online. \u00a0<\/span><\/p>\n

Setting up a company with different types of shares<\/h3>\n

The rights of company shareholders are determined by the types (classes) of shares they own, and how many. There are several share classes available, each of which carries specific rights, thus enabling companies to provide different rights to different shareholders, if required. \u00a0<\/span><\/p>\n

Most companies have only ordinary shares. This share class is entirely suitable for the majority of small companies, particularly those with only one or two shareholders who participate equally in the business.\u00a0<\/span><\/p>\n

\n \n \"FREE\n \"FREE\n <\/a>\n <\/div>\n \n

Setting up a company with ordinary shares keeps things simple and is much easier to manage. However, some companies have more complex ownership structures, which may necessitate the use of multiple share classes.\u00a0<\/span><\/p>\n

Understanding limited company shares<\/span><\/a>\n Why do companies use multiple share classes?<\/span><\/a>\n What rights do shareholders of a company have?<\/span><\/a>\n <\/p>\n

By issuing multiple share classes, you can vary the rights of shareholders in your company. These rights include:<\/p>\n