Owner Managed Business

Owner Managed Business

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I am in some what of a dilema regarding the clarification of Onwer Managed Business with regards to CT on Dividends.

As an example, a Ltd Co. with a single director and 100% share ownership. Is this a Owner Managed Business? or
a Ltd Co. with 2 directors and Co Secretary each owning 33% in shares. Is this owner managed.

Any comments?

mmabsl
email: [email protected]
MMABSL

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By andymeeson
31st Mar 2005 13:18

Not really a technical term
"Owner Managed Business" (or "OMB") is really just professional slang or jargon - used as a shorthand to describe a particular type of business. It isn't a strict legal term with a fixed definition.

In fact, the phrase "OMB" looks to be falling out of favour nowadays. Most people these days seem to refer to SMEs (small or medium-sized enterprises) - which is, for at least certain purposes, a defined legal term!

To answer your question, I would regard both your examples as OMBs. The first one is even a classic "One Man Band" (the other jocular meaning of OMB).

As a working principle, OMBs are companies where the people who own a controlling interest in the shares are substantially the same set of people who run the company - by contrast with quoted companies where the ownership and the management are clearly separated.

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