Case study: advising company owner on alphabet share structure

Our corporate and commercial solicitors recently provided advice to a Bristol-based parking services company on the restructuring of its shareholding structure, based on recommendations from its accountants and specialist tax advisors.

The aim was to issue new shares and implement an alphabet share structure to optimise ownership and tax efficiency, with a hard deadline to complete the process before the 2025 Autumn Budget.

Key challenges

The key challenge was the tight timeline, with a need to finalise the restructuring before the upcoming Budget, and details were only confirmed a couple of weeks beforehand.

Our Corporate and Commercial team worked closely with the client’s financial advisors to:

1. Implement a tax and ownership restructure: the company’s owner opted for an alphabet share structure. This type of structure allows for different classes of shares with tailored rights, such as voting and dividends.
2. Amend the company’s constitutional documents: we updated the company’s Articles of Association to reflect the new share classes.
3. Submit regulatory filings to ensure compliance with Companies House and other regulatory requirements.

Outcome

The restructuring was completed on time, allowing the client to benefit from increased flexibility in share distribution and potential tax advantages. The new share structure provided a clear path for future growth and succession planning, while meeting the client’s immediate needs before the Autumn Budget.

Need advice on a company restructure?

If you are considering changing your shareholding structure, we can help. Our corporate and commercial lawyers provide practical advice tailored to your business needs whilst ensuring compliance and regulatory requirements are met.

For an initial conversation with a member of our team, call 0117 325 2929 or complete our online enquiry form.