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.
- Wear & Tear Allowances 302 7
- Letter from HMRC telling me client passed away 1,396 19
- That old chestnut 340 7
- Supply to Irish State Body 215 2
- Free Agent - Payments on Account 326 6
- PAYE Refund Farce At HMRC 273 3
- Non controlling shares - how to set up 246 9
- Donaldson v HMRC - result?? 215 3
- Investment property where tenant lives rent free 200 4
- Loss on cessation of sole trade 111 1
- Helping clients with bookkeeping but not a bookkeeper 723 18
- MAAT vs ACCA 1,954 35
- IR35 - relationship of WIP 661 6
- How to tell HMRC Limited Co. is active 210 3
- Tax relief for Director incurring business expenses on his credit card 202 2
- Repair or improvement? 428 7
- National Insurance. 151 1
- Trust tax return 171 1
- VAT on land sale 163 6
- Property Development 321 7
- DTR : TIOPA 2010 Section 42 406
- CTA study material 359
- Sect 102 TMA 1970 268
- Sage Forecasting - Print filename 250
- new capital structure ltd with investors 202
- Relief on French Tax Deposit? 199
- Pre incorp expenses 197
- Anyone have clients that use Pay4Later to offer customers credit? 180
- Slight twist on employment related securities 169
- Accommodation provided to employees for short term contract away from home 153