Some people are happy with fee share. Some like the idea of receiving their growth shares. And some want to go a step further. Preference shares are there for those people.
They’re a way of backing Legal Studio directly, not because you have to, or because it’s expected, but because you believe in what we’re building and want a stake in it.
So what are they, in plain English?
Each preference share costs £5,000.
In return, you receive a 10% annual return, paid twice a year
(Provided the firm is making a profit. If, in any period, profit isn’t available to pay it, the amount doesn’t disappear, it accrues and is paid when profit allows.)
After five years, your original capital is repaid.
If the firm were sold during that time, preference shareholders receive their capital back first.
Why call them “preference” shares?
Because they come first.
- First in line for dividend payments.
- First in line for return of capital on a sale.
They’re about a defined return and clear terms.
Why do we offer them?
We’d rather grow with the support of the people already here than bring in outside investors.
Preference shares allow Legal Studio to fund growth internally and keep its independence.
For you, it’s a way of saying: “I believe in this, and I want to back it.” without stepping into the complexity of equity partner structures or uncertain returns.
The key points:
- They’re entirely optional.
- There’s no pressure and no expectation.
- There’s no exposure beyond the value of the shares you purchase