How to issue bonus shares

How to issue bonus shares

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A client company, a private limited company, valued at £1million pounds has a share issue of 10,000 shares.
Only 100 have been allocated, 50 each to the directors, an estranged husband and wife.

Each parent now wishes to give £3000 worth of shares to their daughter. As I see it they need to diminish the value of a share. How do I do a bonus issue?
Suzanne

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By carnmores
15th Mar 2007 14:40

a number of issues
presumably this is be an IHT annual free gift

you may still have 'settlement' problems

£3,000 appears to eqaute to .3% so you appear to have 2 options

1. subdivide the shares or
2. have a bonus issue


if you issued 99 shares for everyone in issue you would then end up with a ISC of £10,000.

technically then the gift of 30 shares is simple they can give 15 each

you will have to decide whether you create a new class of shares that rank pari passu with the others but do not qualify for a dividend

its all very messy eh!

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