30/70 split with new partner

Posted by Anonymous PM | on Mon, 15/03/2010 - 20:42 588 5 comments | report

I have a small ltd and I like to have a second shareholder. The split will be 70/30. I have 1000 ordinary shares at £1 each. What is the best way to give her 30% of the business? Selling 30% of my shares?

I found this http://www.businesslink.gov.uk/bdotg/action/detail?r.s=sc&r.l1=107385879... but it does not say specifically if I can just give them or I need to be paid for them.

Trying to do this by myself ...

Many thanks

Comments

Give or sell?

petersaxton | Mon, 15/03/2010 - 23:53 | Permalink

Which do you want to do?

What other issues are there? Capital gains tax?

no capital gains tax issues

Anonymous | Tue, 16/03/2010 - 07:46 | Permalink

taking her in as shareholder and director to look aftyer the business while I do other things.

can i simply gift her the shares and what are the implications? Or is it simpler to just have her pay for them?

Why?

petersaxton | Tue, 16/03/2010 - 08:04 | Permalink

Why does she need any shares?

as reward for her services

Anonymous | Tue, 16/03/2010 - 08:08 | Permalink

she will help run the busines, working part time, helping with books, business leads etc

I would like her to have a share of the profits

Salary and bonus?

petersaxton | Tue, 16/03/2010 - 08:19 | Permalink

She couldn't have a dividend unless you agreed.

What if there wasn't any profits?