What are prescribed particulars?

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Hey - am trying to set up a limited company with a couple of shareholders. I’m being asked for prescribed particulars. What on earth are prescribed particulars? Cheers

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The term ‘prescribed particulars’ refers to the shareholder rights attached to company shares. These rights are defined in the articles of association. Most private limited by shares companies issue Ordinary shares with the following prescribed particulars attached to each individual share:

  • Voting rights - The right to cast one vote in any circumstances
  • Dividend rights - The right to receive dividend distributions
  • Capital rights - The right to receive surplus capital upon the winding up of the company

If you adopt Model articles in their entirety, each ordinary share will provide equal rights, so the degree of voting power and dividend/capital distribution entitlement of each shareholder will depend on the number of shares they hold.

Prescribed particulars become more complex when different types of shares are issued. In such circumstances it may be best to seek professional advice to ensure the wording is clear, consistent and acceptable.

You will have to state the prescribed particulars attached to your company’s shares in a number of circumstances, including: upon the submission of an annual return; upon the issue of new shares; and upon the reduction of share capital.

You can find out more about prescribed particulars here.

a year ago
 

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