share ownership

[OGgy21]

I have come across a company with one shareholder having 1 ordinary share of 1pound and another with 10 shares of 10pence each. Am I right in saying that even though the shares are of the same nominal value, the shareholder with 10 shares of 10p each owns 90.9% of the company?

Am I also right in saying that different dividends can be declared for each as the shares are not uniform?

 

[WaveJumper]

All you need to know on the subject here
https://www.informdirect.co.uk/shares/share-split-and-subdivision-explained/

 

[OGgy21]

hi Wave,

thanks for this. Can't see the answer directly but looks like I'm wrong above and that they are in fact 50/50 shareholders?

 

[OGgy21]

bump! Any guidance would be much appreciated

 

[Scalloway]

As the shares appear to be different classes then you need to see what the rights to each share are. If all shares have voting rights then the shareholders both get the same dividends but the owner of the 10p shares has 90% of voting rights.

 

[OGgy21]

thanks scalloway, i thought that would be the case re. the voting rights. I'm still not sure on the dividend point however - surely even if both shares have same rights they would be of different classes by virtue of having different nominal values (and thus not uniform in all respects) therfore allowing for different rights to dividend?

 

[Scalloway]

It will be down to how the different share classes were set up.

 

[The Resolver]

Check the filings for the company at Companies House which will show whether either class of shares are denied voting rights.