Companies Act 2014 section 1044

Variation of rights attached to special classes of shares

Section 1044 sets out how the rules governing the variation of rights attached to special classes of shares apply to Public Limited Companies (PLCs).

• The existing rules on varying class rights for Designated Activity Companies (DACs) under section 982 are extended to PLCs, with all references to a DAC read as references to a PLC.
• The authority to allot shares for PLCs is governed by section 1021(1) rather than section 69(1), which applies to private companies.
• The method of reducing company capital is adjusted so that only the means referred to in section 84(2)(b) applies, rather than the broader reference to either of the means referred to in section 84.
• These modifications ensure that the class rights variation procedures are aligned with the specific statutory provisions that govern PLCs rather than those applicable to DACs or private companies.