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.
- Can I take action against my accountant for incompetence? 998 19
- Sage Starting Again As Records are in a mess 121 3
- Supplier refund treatment in Sage Line 50 161 3
- Not a good start no broadband 401 9
- Do I need to report this to SOCA 3,183 30
- Question regarding gym training 327 5
- CIS Deductions 220 1
- Leaving Flat Rate Scheme for VAT 116 2
- is this fraud? 629 11
- first year company tax return for a limited company 1,348 27
- Entrepreneurs relief available? 411 8
- Has anyone read the implications of the Lisbon treaty? 637 10
- Property initial recognition 150 2
- P11D Dispensation 234 3
- CPD 130 1
- Dissolving company to avoid CCJ 434 7
- new software IXBRL and Accounts production? 158 1
- Mortgage to buy property in limited company 196 4
- Directors Subsistence 404 3
- Gong round in Circles with CT600 220 2
- Property exchange - 8-year legal delay following fall-out 574
- Cancelled 340
- SAGE Payroll Data for Import to MS Dynamics AX 327
- Cancelled 280
- Have you staged yet for auto enrolment? 248
- Probiz 229
- VAT on non-profit making clubs (ECJ VS West Dorset Golf Club) 171
- Phishing emails purporting to be from CIPFA? 170
- Car leasing scheme 163
- Is this UK incapacity benefit taxable in UK or Jersey? 150