When making changes about your shareholders the first and most important thing that you must pay attention to is making sure that your Companies House knows what those changes are. The reason for that is simple. The company needs to know if any new shareholder is added or someone is replaced.
One of the reasons why this information needs to be accurate and factual is simply because this information will be displayed on the company’s public records. The information pertaining to any and all shareholders must be up-to-date and completely precise.
How to Change Shareholders
Now, when you decide to change or replace a shareholder, there are multiple things that you would need to update or change. Below are just some major changes that would need to be made at Companies House to make sure that all the data is updated.
1. Transfer Shares
When deciding to incorporate a new shareholder into your company, make sure that all the current shares are transferred to the new shareholder. What can also be done is the new shareholder can be allotted new shares so that the company’s share space can increase and thus the company’s capital too.
2. Allotment Documentation
Once a shareholder is decided, they must provide a letter of application to the current board of directors of the company, asking for allotment of shares. The board of directors would then go over the application, and they will decide how many shares can be allotted to the new shareholder and how that will affect the current and existing shareholders.
3. Shareholder Form
Now, this is the part of the process that is very important. Before the new shareholder becomes a part of the company, it is necessary for them to complete a form where they provide all the necessary information and documentation. Once they have filled out that form, only then will they be able to receive stocks from the company and thus become shareholders.
4. Shareholder’s Information
You will need to change the shareholder information. This means that you will need to let the Companies House know that a new shareholder is now part of your company. This would mean that all the information, from personal to business information will need to be updated and shared.
Documentation That Is Necessary
Below is just the basic documentation that is necessary when changing shareholders and bringing in new ones.
· Statement of Capital
This is necessary, again, because this will show the number of shares that your company has, how many have been allotted and paid for and all the rights that come with those shares. This way, there is statistical documentation of your company’s progress and all their shares.
Registration can be done online but the form and the proof of registration need to be shown at the Companies House so that the process of change can be completed.
With all of these necessary changes being made, a new shareholder can be incorporated into the company and with this change, a hope for a brighter future for the company.