Companies Act 2006

Valid from 01/10/2009

Special casesU.K.

122Share warrantsU.K.

(1)On the issue of a share warrant the company must—

(a)enter in the register of members—

(i)the fact of the issue of the warrant,

(ii)a statement of the shares included in the warrant, distinguishing each share by its number so long as the share has a number, and

(iii)the date of the issue of the warrant,

and

(b)amend the register, if necessary, so that no person is named on the register as the holder of the shares specified in the warrant.

(2)Until the warrant is surrendered, the particulars specified in subsection (1)(a) are deemed to be those required by this Act to be entered in the register of members.

(3)The bearer of a share warrant may, if the articles of the company so provide, be deemed a member of the company within the meaning of this Act, either to the full extent or for any purposes defined in the articles.

(4)Subject to the company's articles, the bearer of a share warrant is entitled, on surrendering it for cancellation, to have his name entered as a member in the register of members.

(5)The company is responsible for any loss incurred by any person by reason of the company entering in the register the name of a bearer of a share warrant in respect of the shares specified in it without the warrant being surrendered and cancelled.

(6)On the surrender of a share warrant, the date of the surrender must be entered in the register.

123Single member companiesU.K.

(1)If a limited company is formed under this Act with only one member there shall be entered in the company's register of members, with the name and address of the sole member, a statement that the company has only one member.

(2)If the number of members of a limited company falls to one, or if an unlimited company with only one member becomes a limited company on re-registration, there shall upon the occurrence of that event be entered in the company's register of members, with the name and address of the sole member—

(a)a statement that the company has only one member, and

(b)the date on which the company became a company having only one member.

(3)If the membership of a limited company increases from one to two or more members, there shall upon the occurrence of that event be entered in the company's register of members, with the name and address of the person who was formerly the sole member—

(a)a statement that the company has ceased to have only one member, and

(b)the date on which that event occurred.

(4)If a company makes default in complying with this section, an offence is committed by—

(a)the company, and

(b)every officer of the company who is in default.

(5)A person guilty of an offence under this section is liable on summary conviction to a fine not exceeding level 3 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 3 on the standard scale.

124Company holding its own shares as treasury sharesU.K.

(1)Where a company purchases its own shares in circumstances in which section 724 (treasury shares) applies—

(a)the requirements of section 113 (register of members) need not be complied with if the company cancels all of the shares forthwith after the purchase, and

(b)if the company does not cancel all of the shares forthwith after the purchase, any share that is so cancelled shall be disregarded for the purposes of that section.

(2)Subject to subsection (1), where a company holds shares as treasury shares the company must be entered in the register as the member holding those shares.