Our solicitors are vastly experienced in assisting businesses of all sizes to facilitate and advise upon a company issuing shares and its implications in company reorganisations. At Blackstone Solicitors, we are able to advise many different types of client, no matter the complexity of the deal.
For more information about how our team of corporate solicitors can help you with issuing shares in your business, contact us on 0345 901 0445 or complete our online enquiry form and a member of the team will call you back at a convenient time.
Companies issue shares to raise money from investors who purchase these shares. In this way the shareholders can take a stake in the company’s equity as well as a share in its profits in the form of dividends. Depending upon the type of shares purchased and their associated rights, the shareholder may also be able to vote at general meetings of shareholders.
An issue of shares may be structured in a number of ways and will be subject to an array of different taxes including corporation tax, capital gains tax, income tax, value added tax, stamp duty and stamp duty reserve tax.
When a business wishes to issue shares, it is important to ensure all the relevant laws and regulations are adhered to.
We are known for our efficiency, attention to detail and ability to get things done; qualities much needed when pushing through company share issues. We will provide professional, pragmatic advice based on our years of experience in this specialist area.
Our team will do all it can to ensure your business is properly represented in any negotiations and will put your interests first at all times. Share issues can be highly technical and can sometimes involve different areas of law and regulations; we can advise on all these areas and make sure you are in the best possible position for a successful outcome to your negotiations.
Why Legal Help is Important
As part of a business raising capital, share issues can occur in companies of any size and in any industry.
The process can be highly complex and can be considered to be an incredibly important event that will have an impact on your business, both in the short and long term – it is therefore imperative that you have the best legal experts at your side, not only to ensure everything progresses as it should, but also to make sure your business benefits from the best possible outcome.
Companies issue shares for a number of reasons, normally to raise funds in order to reduce gearing, meet working capital requirements or finance a particular project or acquisition. There are a number of ways a share issue can be structured:
- Offer for subscription
This is an offer to the public to subscribe for new shares in the company.
- Offer for sale
This is similar to an offer for subscription except that the sponsor acts as principal and subscribes for the shares itself. The shares are then offered for sale to the general public.
A placing involves an issue of shares by the company on a non-pre-emptive basis (that is, the shares are not offered to existing shareholders in proportion to their existing holdings).
- Vendor placing
A vendor placing typically arises in connection with the acquisition of a target company.
- Rights issue
This is an offer of shares by a company to existing shareholders on a pre-emptive basis in the same proportion to their existing shareholdings.
- Bonus issue
A bonus issue is an issue of shares by the company to its shareholders without any payment in return.
A warrant gives the holder the right to subscribe at a fixed price for a security or other asset at a future date or dates.
- Scrip dividend
This is where a company paying a dividend offers shareholders further shares as an alternative to cash.
Whatever form your business reorganisation and share issue takes, we ensure full compliance with corporate laws and regulations, so your company and its directors can complete the restructuring on a firm financial and legal basis.
We will work with your accountants and financiers to ensure all financial and tax aspects of the share issue are properly addressed. We are able to assist with any aspect of raising funds for your business and will guide you through the technicalities of the process in a clear and concise way. We have a team of experienced solicitors well versed in the process who are ready to assist you in your share issue.
Get in Touch
Find out more about our services and how our corporate solicitors can assist you and your business by getting in touch. We have offices in Cheshire and London and are able to serve clients across the North West, including Chester and Manchester, as well as throughout the UK and also overseas.