company buy back of shares

company buy back of shares

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HI

A LTD that has not traded for a while has 3 shareholders.  They want to be in a position where the compnay is dormant and 1 person holds shares.  The other 2 parties have suggested the caompany buys back the shares at nil as there is no value in the company.

my thought is to just tfr the shares to 1 remaining shareholder at nil value.

if they insist on company buy back, is there anything i need to be aware of.  I will be looking at cos house website and HMRC, but any tips would be appreciated.

Thanks

Replies (3)

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By blok
15th Sep 2011 12:50

.

the shareholders may be wasting a lot of time and effort.

why do they want to keep the company.

what assets and liabilities are there?

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By Fidodido
15th Sep 2011 14:22

future

want to keep the name and possibly use in the future for another venture.

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By pembo
15th Sep 2011 16:20

you've answered it yourself

Why bother with the complicated buy back route when the others could just gift inter vivos ? Quote the cost of you drafting the resolution and filing the forms at CH etc compared to 2 simple share transfer forms and that may concentrate their minds. I'd go for £300 against £75 and may even be more if the articles currently prohibit it.

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