Companies Act 2014 section 65

Powers to convert shares into stock, etc.

Section 65 deals with the power of a company to convert its fully paid-up shares into stock and to reconvert stock back into shares, and sets out the rights and transfer rules that apply to stockholders.

• A company may, by ordinary resolution, convert fully paid shares into stock or reconvert stock back into fully paid shares of any denomination, unless the constitution provides otherwise.
• Stockholders may transfer their stock in the same manner as the original shares could have been transferred, subject to any minimum transfer amount set by the directors (which cannot exceed the nominal value of the original shares).
• Stockholders enjoy the same rights, privileges and advantages — including dividends, voting and other matters — proportionate to their stockholding, as if they still held the underlying shares.
• Company regulations that apply to fully paid shares also apply to stock, with references to "share" and "shareholder" read as including "stock" and "stockholder" respectively.