Issuing B shares | AccountingWEB

Issuing B shares

Two directors hold equity shares in unequal proportions.

They would like to take equal salary and equal dividends up to an agreed level then if surplus profits exist distribute a balance in accordance with their equity shares.

The suggestion is to issue B shares out of profits which will give them a right to share dividends equally.

Mems and Arts and resolutions can be taken care of but are there any tax pitfalls in this proposal?

Anyone with previous experience please?



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Well! You could ...

Euan MacLennan |
Euan MacLennan's picture

i have just asked an identical question for identical situation

imbs |

is it easy to amend the articles?

imbs |

Not sure about your second approach...

frustratedwithhmrc |
frustratedwithhmrc's picture