Joint shareholders Q and As

Posted on March 2, 2012 by Carol Prince

A quick round-up of frequently asked questions.

Q: Do joint shareholders have equal rights?

A: The simple and straightforward answer is “no”. Under s286 of the CA06 (previously regulation 55 of Table A) the first person named in the register of members (the senior holder) has the right to vote at meetings, appoint a proxy and sign a shareholders’ written resolution whereas the remaining joint shareholders do not. So the person named first has more rights than the other/s. In all other respects, joint shareholders do have equal rights.

Q: So does it matter how joint shareholder names are listed on an application for shares or a transfer?

A: Names should be listed in the order you wish them to appear in the Register of Members so that the person you wish to be the senior holder is entered first.

Q: Should the company send notices and documents to all the joint shareholders?

A: The company can if it chooses to but it is not under any obligation to do so.

Q: Is there anything that requires all the joint shareholders to agree?

A: Yes, all of the joint shareholders will need to sign to transfer the share to someone else In addition, dividend mandates or agreements to receive documents via email will require all of them to sign (unless the articles provide otherwise).

Q: Is there a limit on how many joint holders there can be?

A: There is no particular limit as such but usually four joint holders are allowed as a maximum. For example, the CREST system, used by many PLCs to hold shares, allows for between 2 and 4 joint shareholders.
Alternatively, you may find that a company’s articles set out the limit on how many joint shareholders can be registered.

Need further information?  Contact Helen Goose on 0117 9181322 or email helen_goose@jordans.co.uk

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Have your say – Red Tape Challenge

Posted on February 14, 2012 by Carol Prince

Since 26 January 2012 the government has turned the challenge spotlight on company and commercial law.  It’s a chance (at the very least) to have your say. 

The challenge highlights 120 pieces of legislation and asks for views on whether they should be:

  • scrapped
  • retained in current form
  • reformed
  • simplified or merged.

 The Discussion Paper focusses on 6 areas: 

  • Company names- how are companies coping with the new rules?  How could improvements be made?
  • Company filings – for example, would it be useful to file the annual return and accounts at the same time?
  • Rights to inspect registers and require copies – can improvements be made here?
  • Penalties and enforcement – are there improvements that can be made?
  • The requirement to register newspapers
  • Employee share schemes – can this be simplified?

Jordans will be commenting on company names, sole directors and the model articles.  We’ll also be, seeking further information on the position in relation to consultations/proposals that we have not heard about for a while such as objecting to a registered office address (being used without permission) and what, if anything, is being proposed in relation to statements of capital.

Kathleen O’Reilly, our Head of Internal Legal Services says “we’d be very interested to hear from practitioners as to their particular concerns and we’re happy to include them in our submissions.  Where we are having similar problems this is a good opportunity to make our views known.”

Share your views with us by email to redtape@jordans.co.uk

For further information see:

http://www.redtapechallenge.cabinetoffice.gov.uk/home/index/

http://http://www.bis.gov.uk/assets/biscore/business-law/docs/c/12-560-company-law-flexible-framework-discussion-paper.pdf

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Top regional newspaper chooses Jordans business data again.

Posted on February 10, 2012 by Carol Prince

We were delighted to be consulted once again by the Western Daily Press to provide data on the South West’s top companies for this year’s Business Guide.

In last year’s guide, we highlighted how the most successful business were increasingly focusing on risk management. It is clear that this is a progressing trend given the growing numbers utilizing our company information reports and company monitoring services. Our compliance and professional services (e.g. accounting or Bribery Act Support) are also coming into play when businesses consider their risk management. Prudent operational procedures are critical but it is possible to be compliant whilst being creative in business development and this is where business information is valuable.

These successful companies make use of detailed business data and analyses to determine trends in sectors and markets which best support their own investment and sales activity. e.g. Researching territories and sectors where the insolvency outlook is favourable for developing tactics to exploit opportunity and mitigate risk.

Prudence and compliance notwithstanding, there’s no doubt companies in this region face a challenging future. However, close scrutiny of the data we supply detailing new entrants to the Top 150, confirms the region continues to be rich in innovation and entrepreneurial spirit.

It would be easy to gloss over the struggles that are still very real for many businesses in the region irrespective of manifesto promises and Downing Street strategies. It is clear that small business funding is still difficult to acquire. It’s also clear that the Euro crisis and ongoing deficit reduction measures will not make our lives any more certain over the next twelve months. However, one of the real pleasures in supporting the Annual Business Guide with Jordans company data is that, in writing an accompanying editorial and reviewing the underlying data we collect, I get the opportunity to examine the business community with a fresh perspective. When you do this it’s equally clear that there is much to be positive about; sometimes we have to just look a little harder for it but having reliable data to hand is the next best thing to a crystal ball.

For more information contact Andy Watson tel 0117 918 1527 email andy_watson@jordans.co.uk

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