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Value change refers to the change made to the price of the shares.

Limited by shares companies must assign a nominal value to each of their shares during their incorporation, for example, £0.01, £0.50, £1.00, or higher. The nominal value of shares represents the limited liability of company members, which is the sum of money that shareholders are legally required to pay on each of their shares upon the company. The combined nominal value of all issued shares is the total share capital of a company.

Reduction of capital is a way of reducing a company’s share capital. The result of the capital reduction is that the company’s number of shares will reduce by the reduction amount. However, the company’s market value will not change — there will simply be fewer shares available to trade.

In simple text, if you have 10 shares in your company with a value of £5, you can reduce the shares’ value to £1 or at the lowest £0.01: you still have 10 shares in your company. The value of your shares has been reduced to the chosen amount.

To changes the value of your share amounts, you need to fill the form SH02.


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