How to increase share capital for Uk Businesses

Q- Company with two shareholders having 1 share each wants to increase share capital to 200 (100 shares each) to enable them to take different dividends payments. How would they go about this. What paperwork is necessary and can it be done online with Companies House or not? Would the Memorandum and Articles need altering or is it just a form filling excercise?

Answer-

Was this company formed before the relevant provisions of CA 2006 came into force? If so, it will have an authorised (maximum) share capital set out in the Memorandum, which is now deemed to be incorporated into the Articles. If that is less than £200, you will need to amend the Articles by special resolution and send an copy of the amended Articles to Companies House for filing.

If the company was formed after the CA 2006 came into force, the concept of a maximum authorised share capital no longer exists and the directors are probably empowered simply to issue more shares at their discretion, as they would be for a pre-CA 2006 company with an authorised capital of at least £200.

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