Enterprise Investment Scheme - Is it better to have the inventor of the project as a director or is it OK to be just a shreholder......
My clent has basically given the idea to a Ltd Company (ownership and royalty rights) in exchange for shares. The company is now in the process of attracting investors.
The investment company that has been putting the whole deal together has insisted that he must become a director of the company but my client has insisted that he does not want to. This finance company is insiting that without him as director then the whole investment is in jeopardy.
My client feels that he is being bullied into something he does not want to do. He does have a major shareholding in the company and he is of the opinion that this should be enough for the investors concerned and sees no extra benefit to him being a director.
He has comitted himself to working for 2.5 days per week for the company until the project is ready for market.
Which one of these people is right? Does he need to be a director or can he be what he wants - a consultant with a comitment of 2.5 days per week.
- Not renewing AAT 589 8
- Self-assessment statistics 2,384 56
- Accountant won't release working papers 2,681 51
- New dividend taxation 293 2
- Co purchase printed materials from EU - VAT 86 1
- Company car v company allowance 197 1
- Furnished Lettings - expenses normally bourne by tenant 421 9
- Company formation and bank account 346 9
- Next Move 621 18
- Owning overseas property 291 2
- MLR and benefitting from the disclosure 278 1
- Company Car for Owner Director number crunching - is there a ready reckoner? 204 3
- How did you recalculate your payroll fees 676 8
- Client tied in to accountant. Unfair contract? 620 9
- Importing Sage Data and Year End 231 2
- Legal structure of a group of friends producing a free newspaper 407 8
- OneNote is fantastic 555 11
- VAT Direct Debit 380 7
- S445 tax V's new dividend tax 467 8
- Self Assessment Software 701 21
- Self employed and HMRC Worldwide Subsistence Rates 663
- Acrobat Checkbox Help for New 64-8 405
- Property letting & CAs 395
- Interest paid - do new rules affect Tax Credits? 390
- 2015 tax year end 388
- FCA regulated company in a small group 344
- Self employed consultant working in Ireland 303
- Market Invoice (P2P invoice discounting) tax treatment 237
- Tax on internet ad sharing income 203
- DTA tie-breaker issue 203