I'm just completing an Annual Return on line and the form has been changed quite a bit, but under the section for issued shares it appears a note needs to be written regarding voting rights, dividend rights, capital rights, whether the shares are to be redeemed etc. Anyone come across this? Is there a standard response for a normal owner managed company with 100 shares issued to the sole director? Thanks in advance.
each share is entitled to one vote in any circumstances this wording will reflect the general legal position of one member one vote under section 284 Companies Act 2006;
each share is entitled pari passu to dividend payments or any other distribution this will reflect a basic right to dividends but any dividend must be made in accordance with the Companies Act and the companys articles of association; and
each share is entitled pari passu to participate in a distribution arising from a winding up of the company - any distribution from a company being wound up will therefore operate in accordance with the law.
It is very unlikely that companies using the model articles will issue shares with capital distribution rights. Generic wording is therefore difficult to provide and companies with such shares are better placed to describe the rights attached
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
