Shareholders Resolution of Share Capital Consolidation

The resolution is usually proposed by the company's board and requires the approval of a certain percentage of shareholders, often specified in the company's articles of association or under company law. This restructuring can affect the ownership proportions but doesn't alter the overall value of the shareholder equity.

The resolution document specifies the terms of consolidation and sub-division, including the ratio of old shares to new shares, the reasons for the changes, and the timetable for the changes to take effect. Once passed, these changes are legally binding and must be filed with the appropriate regulatory body, such as Companies House in the UK.