Director share buy back

Director share buy back

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One Director left the company after agreeing to a share buy back (had held shares ove five years). This has been agreed by the revenue, but other two Directors have fallen out and there is a threat that the business will be liquidated shortly after the share buy back deal. That Director is worried that there may be a tax investigation? Any ideas?
Anon

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By billgilcom
03rd Nov 2007 16:06

Risk of Investigation
Is there some particular reason for the director's fear that there will be a tax investigation? A share buy back wouldn't be the first and most likely reason for a company being investigated.

While others may disagree, if there is a risk of a tax investigation that might arise before the company is liquidated wouldn't it be wiser to clear up that concern before the outgoing director is paid for his/her shares - otherwise the two left mayend up footing the whole bill between them after having effectively paid out over the odds for the outgoing shareholders shares
regards & hope this helps
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