COMPLEX SHARE DEAL: DO YOU KNOW THE RIGHT WAY?
HCO LTDI S OWNED BY TWO DIRECTORS: AND OWNS 100% OF SUBCO LTD.
THE COST OF SUBCO'S SHARES WAS THE VALUE OF HCO ON INCORPORATION AND WAS THE CAPITAL INJECTED INTO THE BUSINESS ON COMMENCEMENT/INCORPORATION BY THE TWO OWNER DIRECTORS(WHO OWN THE SHARES OF HCO)
THE SHARES COST £250,000.
THEN :THE DIRECTORS WANTED TO WIND UP HCO AS IT HAD NO ROLE OR COMMERCIAL PURPOSE.
THE DIRECTORS SHARES IN HCO WERE TECHNICALLY WORTH 250,000
ONE DIRECTOR RECENTLY MARRIED AND WANTED TO LOCK IN THE SPOUSE (WITH LIMITED RIGHTS) SO SUBCO ISSUED FIXED DIV PREF B SHARES TO THE SPOUSE WITH NO VOTING CONTROL FOR NIL CONSIDERATION.
HOW IS THE VAULE/COST OF THE HCO SHARES LOCKED INTO SUBCO SO THE DIRECTORS HAVE SOMETHING TO SELL IF THEY FIND A BUYER?
OR WILL THE HCO SHARES BECOME WORTHLESS? WHILST THERE WILL BE TRADING ASSETS IN SUBCO?
CAN THE SHARES(AS THEY ARE THE DIRECTORS INVESTMENT IN SUBCO(THROUGH HCO) BE VALUED AS INHERENT PURCHASED GOOD WILL IN SUBCO?
- Tax on LLP members drawings not covered by future profits 375 14
- directors loan 246 7
- Is there no lower level to the work a lawyer would take on. 814 27
- Director registration for SA question 256 11
- How do you pay Inheritance Tax when HMRC haven't demanded it 212 3
- New Company reviews please 455 12
- Business only use of company car 603 23
- Holiday pay calculator for client use? 338 4
- CIS not deducted 303 5
- Car Capital Contribution 180 2
- cgt quoted shares losses 199 1
- LLP and corporate members - timing differences impact on corp tax 80 2
- VAT FRS percentage for sales person? 209 3
- Money Laundering Manual 257 10
- As I was saying, Its VAT question day 352 8
- VAT with Russia 122 1
- Scientist switch to accountancy - work experience? 1,040 28
- Penalties for late PAYE scheme 209 2
- Worst corporate entertaining events? 1,154 9
- CGT on Let Property 234 4
- RTI Rollback to delete incorrect data 281
- Motor Traders Assistant Bookkeeping Programme queries 235
- Vouchedfor.co.uk 234
- Tracesmart/Lexis Nexis AML software? Any opinions? 208
- Any thoughts on Capium? 197
- Expenses Software 189
- auto enrolment 176
- Sage Compatible P60's Self Seal 168
- How to account for investment in JV? 146
- Continuity of practice-ACCA 145