Enterprise Management Incentive Scheme
We set up a holding company to use as a vehicle to acquire two other companies. This holding company has a share capital of £840,000. This money, along with Director loans, was used to acquire Company A for £760,000 and Company B for £250,000. The holding company is now non-trading.
The share capital in Company A is £30,000. To ensure we retain the key staff in Company A, we want to set up an EMI scheme and grant them the option of acquiring shares in Company A at some point in the future.
It appears however, that you cannot set up an EMI scheme if you are a 51% subsidiary (Company A is a 100% owned by the Holding Company). Because the holding Company is non-trading and we are not expecting to acquire any further Companies, how can we remove the Holding Company so that Company A is no longer a subsidiary?