Company Law In Guernsey - Share Capital

The consent of the Financial Services Commission is required for the issue of shares by an existing company unless the amount raised by that transaction and by all the transactions by the same company in the previous twelve months does not exceed o500,000.

The authorised capital can be split into different classes with different rights as to voting, participation in profits, etc, or different denominations and can be issued in any currency. It is also possible to create redeemable preference shares.

Shares may be issued at a premium in which case the uses of the resulting share premium account are restricted. However, one such use is the payment of any premium due on the redemption of redeemable preference shares. With the sanction of the court, shares may also be issued at a discount. A reduction of share capital is permitted only where the company has passed a special resolution and the court approval has been obtained.