I am helping a small limited company with there accounts but have come across an issue I have not dealt with before.
A shareholder (just having 3 ordinary shares of 100) wants to sell them back.
This is not a problem as the business is happy to do it.
My question is if form SH03 is completed then the shares have to be cancelled? Is there a way the company can buy them back and add to majority shareholder?
Hope the question is clear!
Replies (5)
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"Is there a way the company can buy them back and add to majority shareholder?"
If there is it would presumably have tax implications for the recipient shareholder who would be being given a valuable asset paid for by the company. Any reason why the shareholder doesn't want to buy the shares?
Best check what the Articles say too.
I hope you're not just filling in a form SH03?
There does need to be a contract between the parties which has to be approved by the members. And you need form SH06 too.