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.
- not self employed since March 2011 now received a penalty for late tax return for year 2012-13 204 7
- What quality paper do you use for correspondence? 413 15
- Dress code 69 3
- directors control and tax problems 127 4
- Bulk Invoicing 164 6
- What would you do in this situation? 515 12
- Travel and Substinance expenses while abroad 139 3
- Help Required 292 6
- Self Employed Self Assessment: Capital Allowance and Car Lease/HP 230 2
- What's in a name ? 263 4
- ATED Penalties 268 1
- late second payment on account 163 2
- US royalties 91 2
- Project being run jointly 134 2
- Reclaiming overpaid employer NI contributions 180 2
- Straightforward email correspondence or PDF letter attached to blank email? 200 3
- Sole trader mix up 299 4
- Vat on 'pig slurry' - palatable subject I know! 751 6
- FILING COMPANY ACCOUNTS 903 27
- Staff accommodation without a rental value or RV 212 4
- CTA study material 701
- Anyone have clients that use Pay4Later to offer customers credit? 424
- Employment related securities question 266
- AIM Stocks and IHT 245
- Tax Relief for overseas employees 199
- Expat pension contributions? 186
- Trust for Employee 186
- Raiders of the Lost Tax File 169
- Quickbooks losing VAT return data 157
- Recommendations for Ross Martin Tax consultancy 2014 120