Can a "close company" have 7 shareholders/ directors?

Can a "close company" have 7 shareholders/...

Didn't find your answer?

I have been approached to advise on Ltd Co v alternatives, for a group of seven friends thinking of running a business together. Although I do complete small Ltd Co accounts only for companies with 1-3 folk involved. I seem to remember there being a rule of only 5 people involved to be allowed to be a "Close company" and take advantage of the relevant perks?

Has this changed? Are there ways around this i.e. 7 shareholders/ only 4 or 5 directors? Don't know the full set up yet, but didn't want to miss-advise as very early days yet.

Many thanks in advance :-)   

Replies (6)

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By Alfie Bet
27th Sep 2013 11:40

Relevant perks? What relevant perks? There aren't any relevant perks to being a close company. There are some decidedly non-perky aspects to being a close company, like S. 455.

The best way not to misadvise them would be to send them to somebody who knows what they're talking about, surely?

Assuming that they're all going to have an equal stake or just that they will all be directors, it will be a close company; one that is controlled by 5 or fewer participators or any number of directors.

There ain't no bloody perks though.

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Replying to SteveHa:
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By Ann Lovatt
27th Sep 2013 12:09

Thanks Alfie...........!

Alfie Bet wrote:

The best way not to misadvise them would be to send them to somebody who knows what they're talking about, surely?

Thanks for your vote of confidence Alfie! I am compedent, just rusty as I qualified over 25 years ago!

ok I agree "perks" wasn't really the correct word. I just didn't want to spend ages reasearching as I don't honestly think it will come off as a real business. As it's the boyfreind of an existing client and his mates, a group of new graduates who think they are all going to be the next Merchant Ivory Productions/ Alan Sugars.............more of a freebie reality check, me thinks?

Just for the record, I do refer folk on with geniune issues that are beyond my current knowledge, as I'm a one woman band, but I wouldn't waste others time with this one yet. It was only a passing thought as I have no-one to bounce ideas off!

 

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Replying to Matrix:
By Alfie Bet
27th Sep 2013 12:34

Don't mention it

I learnt that particular compliment at charm school.

We've found an advantage to being a close company though! Or more correctly, an advantage of being either a close company or an employee-controlled company.

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By gbuckell
27th Sep 2013 11:55

Interest relief?

What about interest relief on loans to invest in the company?

Struggling to think of anything else!

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By Ann Lovatt
27th Sep 2013 12:50

charm school?

such a pity they have dropped those classes from the school time tables?

........and are you going to share your findings?

As you seem to be a "we" And I'm only an "I".

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By Alfie Bet
27th Sep 2013 13:36

The we...

... that I was referring to was you, me and gbuckell.

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