Ordinary share | Practical Law

Ordinary share | Practical Law

Ordinary share

Ordinary share

Practical Law UK Glossary 2-107-6941 (Approx. 3 pages)

Glossary

Ordinary share

The most common form of share. For the purposes of chapter 3 of Part 17 of the Companies Act 2006 (Allotment of equity securities: existing shareholders': right of pre-emption), ordinary shares are shares other than shares that as respects dividends and capital carry a right to participate only up to a specified amount in a distribution (section 560(1), Companies Act 2006).