Class rights in companies with or without share capital: definition, variation, challenges and Companies House filings under the Companies Act 2006

Published by a LexisNexis Corporate expert

Practice notes

A company with share capital can issue multiple classes of share, each carrying distinct rights. A company without share capital can instead have separate classes of member with different rights. The presence of such classes can give rise to class rights. Where class rights exist, they may only be altered in the manner permitted by the Companies Act 2006 (CA 2006). For more information, see Practice Note: Class rights and variation of class rights.

What different types of share might a company having a share capital allot?

In a limited company with share capital, every share must have a fixed nominal value (as required by CA 2006, s 542) and will usually be assigned a designation or name, for example, ordinary shares of £1 each. The nominal (par) value is the fixed monetary amount by which a share is denominated and indicates the shareholder's liability to contribute to the company's assets on a winding up. Any sum paid or agreed to be paid on allotment in excess of the nominal value is treated as share premium...

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Web page updated on 21/05/2026

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