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.
- Concerned about RTI 2014 2,415 61
- Can you recognize revenue on asset sold and bought back at a later stage? 65 2
- How to prepare and Finalize Vat company accounts 64 2
- How to format a stock book 378 2
- Can you get tax deduction for legal fees on sale of debtors 237 8
- Investment property company accounts template 252 1
- New HMRC phone answering method ... 287 6
- Where can I get Quickbooks help 56 2
- Quickbooks expert needed 127 2
- Aggressive HMRC 1,239 14
- Charity reserves 63 1
- Have i messed up? 428 7
- Related Parties Note 305 6
- Client change of address for VAT - can't do it online?! 340 6
- Personal returns late information - when to get tough? 1,331 16
- Sage 50 Accounts - Opening Bank Account Balance Posted to Nominal 9998 Suspense Account 472 26
- RTI and Annual Directors Salary 251 1
- End of the party for dividends? 1,253 18
- Playstation 4 - Allowable expense or not? 2,387 31
- Disposal of property 102 2
- Desperately seeking Susan, Sam or anyone with any other name 976
- Experience with Islamic investor following Sharia-compliant rules? 538
- Darwinpay Partnership Assessment 351
- Tax efficient holding company structure 278
- S464A Charge to tax: conferring benefit & BIK 261
- auto enrolment - calculation of first pension deduction 209
- Charge out rates in London? 191
- Personal consumption by landlord 167
- Interest on Loan to a Company 158
- Pension contributions higher rate extension? 153