Alphabet shares - redeemable shares | AccountingWEB

Alphabet shares - redeemable shares

Client formed his own company to purchase a restaurant without consulting me.

He managed to pursuade  a husband and wife to lend £45k

He has lent £22.5k

His daughter £22.5k

The balance of purchase price loan from bank.

So far only 1 share allotted on incorporation.

He now tells me the agreement (drawn up by solicitor) which I have not seen makes provision for payment (not sure if dividends) to the husband and wife and after 3 years the husband and wife will "relinquish" (his word) the shares for no consideration.

He now asks if alphabet shares could be issued to enable different dividends.

1 I assume they can be issued with change of articles?

2 What is situation in 3 years assuming the company has reserves and therefore the shares have value above par. Can the husband and wife gift at nominal value? (always assuming the agreement is robust enough).

3 Would it be more appropriate to issue redeemable shares to husband and wife.