Share Type Maintenance
This screen is used to maintain company Share Types. To delete an existing share type click on the Delete icon to the right of the share type.
Differing Share types offer their holders different privilege and obligations. Ordinary shares are usually the most common, allowing their holders to share fully in business profits when times are good, but offering them a lower priority to share profits when times are bad. Preference shares allow holders to have a better priority in bad times usually up to a certain level. Redeemable shares can be recovered by the company under certain conditions. Consult your advisor if your share type is other than ordinary.
The nominal value of the share is the price of the share when issued. The price is shown on the share certificate. The nominal value of the share is distinct from the share price which is the price of the share if it is bought or sold subsequent to issue.
Description of the share examples are: £1.0 Ordinary share (An ordinary share with a nominal value of £1.0) £0.25 Ordinary share (An ordinary share with a nominal value of £0.25) £0.50 5% Preference share (A preference share with the right to a dividend of 5% of the nominal value of £0.50 each year)