Investment in small company | AccountingWEB

Investment in small company

My client has a potential investor who would bring certain skills to their company. The investment will be for 45% stake and will be cash and assets (for newly issued shares). In circumstances where the shares cover the value of the assets so that no debt is showing in the company books against these assets, can the investor further protect themselves by raising a charge/debenture over these assets (plant and machinery)?

Would this be common practice?

Any other factors to consider?

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BananaMan |

Separate transactions?

WhichTyler |