How small can the nominal value of a company’s shares be?
For example, if I have issued one ordinary share of nominal value £1.00 to myself as the sole shareholder of the company can I then pass a resolution to subdivide this one share to create 1,000,000 shares of nominal value £0.000001 in advance of carrying out a SEIS fundraising round and implementing an EMI share option scheme?
There appears to be no restriction in the Companies Act 2006 on shares having a nominal value which includes a fraction of a pence.
However, it should be noted that on the Companies House website guidance regarding filing online via their webfiling system is currently set up to allow for ‘a maximum aggregate nominal share value of up to 12 whole numbers and 3 decimal places’. Although you could always instead complete and file the requisite statement of capital forms by printing the PDF versions off and mailing them to Comapnies House.
Apparently Companies House currently have plans to reduce the minimum denomination further to five decimal places of a penny.