RE: SPAM Time (Again)22 Apr 2026 12:56
Key Relevance of No-Par Value for UK Listed Shares
Removal of Minimum Issuance Price: Under UK law, shares cannot be issued at a discount to their nominal value (e.g., a £1 share cannot be issued for 90p). Using "no par" (or nominal "low par" such as 0.01p) allows companies to issue shares at market price, even if that price is very low, without infringing on this rule.
Flexibility in Capital Raising: Companies can set higher or lower share prices for future public offerings based on market demand, without being constrained by an outdated, higher nominal value.
Reduced Legal Liability: If a company issues par value shares and the market price drops below that par value, it can create technical difficulties or potential liabilities regarding the "watering" of capital. No-par value eliminates this risk.
Simplified Accounting: For accounting purposes, the total proceeds from the sale of no-par value stock are credited directly to the share capital account, whereas par value shares require splitting proceeds between share capital and share premium accounts.
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