Articles on: Shares

How to convert par value shares to no par value shares

Estimated reading time: 1 minute and 15 seconds

InfoDocs offers four share reorganisation transactions that are easily completed on the app: Changing Authorised Shares, Buybacks or Converting Shares, Redeeming Shares, and Share buy-backs. All of these can be found in the Share Classes tab, under Actions, and by clicking on Share Reorganisation.

The Par value for a share is its per-share value assigned by the company that issues it. No Par value shares do not have a minimum price. Their value is determined by the amount that shareholders are willing to purchase those shares for.

Step 1: Log in to your InfoDocs account here. If you don’t already have an account, register for a free trial

Step 2: In the Share Classes tab, click on Share Reorganisation. Select Convert Shares in the box that pops us, and click Next.

Step 3: Another box will appear, asking you to specify the conversion date and the converted from and converted to share class. Fill in the correct details, and click Save.

Note: Old share certificates will be deleted/canceled upon conversion and new ones will be created. These transactions you can see as they happened in the Share Transactions tab, and the certificates will be available in the Shareholders tab under Maintain Share Certificates.

References:

https://www.investopedia.com/ask/answers/051115/what-difference-between-par-and-no-par-value-stock.asp

Updated on: 06/03/2024

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