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?

 

JP

Comments
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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