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?
- Builder using cash labour 97 1
- Easy way to not pay tax 77 2
- VAT on Microsoft Office Accounting Professional 2009 184 1
- Surcharges on very late VAT 210 3
- Should I pass on my HMRC login 428 11
- If an invoice is sent and paid does a contract exist 267 10
- Using a Business broker to sell a clients Company.....??? 124 2
- Was I rude 809 20
- Need qualification back due to clients' banks needing my references 311 9
- Paint Manufacturer Flat Rate Scheme 217 8
- IRIS Open Books problem 293 1
- Incorporation - any tax advantage? 298 7
- Company overdue but wants to be struck off 206 6
- Non-compete agreement 186 1
- Expenses claim for non employee 202 1
- Any views 741 1
- IRIS Practice Management 153 2
- Non Registered trader selling to Malta 115 2
- Pre- trading Expenses 110 1
- Dividend payments and shareholdings 185 3
- Skandia using wrong address 1,487
- Nil Rate Band Trust - index linked debt by way of charge over property 826
- International interest certificate 448
- Stamp Duty on share for share exchange 423
- Sale of business 397
- NOVA 298
- farming-related R & D tax relief claims 209
- Bonus Bonds 180
- Management expenses for investment company 177
- Can Limited Company Buy Share of Rental Property? 169