Following on from recent new features and enhancements to Inform Direct we have today launched a new feature to allow users to merge ‘unreconciled’ imported shares classes together.
Merge share classes
This new process lets you reconcile the shares where the exact name of the share classes has changed between the last list of shareholders provided in a confirmation statement and the last statement of capital.
Example of when the option is available
The last list of shareholders submitted to Companies House had the share class name as ‘Ord’ whereas the last statement of capital had this as ‘Ordinary’.
Therefore, when imported into Inform Direct two unreconciled share classes are shown – one for ‘Ord’ and and one for ‘Ordinary’.
The total number of Ord shares held by the individual shareholders is the same as the number of Ordinary shares in issue and the two shares classes are the same. This means that the two classes should be merged using the new merge with another share class option.
It is all done using a simple flow that allows you to choose the share classes to merge and the final share class name you want.
Completing the flow will then merge these two share classes into one and the shares will show as reconciled.
Unreconciled shares
Unreconciled shares arise as a result of inconsistencies in the information held by Companies House on the share capital of the company. The share capital information is required to be updated when certain share capital changes are made. This includes where:
- new shares are allotted
- shares are split
- shares are converted
- shares are cancelled following a buyback or share capital reduction
However, the details of the shareholders and the shares they held are only updated when a confirmation statement is submitted.
Therefore, when a company is imported from Companies House, the statement of capital may not agree with the shares held by the shareholders.
The merge share classes is only available for unreconciled share classes that arise when a company is first imported into Inform Direct.
Please let us know your feedback
Please do let us have any feedback on this or any other features of Inform Direct and any enhancements that would help you with your company secretarial work.
