Share in business for web developer

I have a small limited company client who wants to give a freelance web developer a 10% share in the business to retain his services.  The business is only in its 3rd year but things are really starting to pick up by all accounts.  They want to retain the services of the web developer in exchange for a 10% share .

Current shareholding is director A has 90% and director B has 10%,  The idea is to gift 10% to the web developer from director A reducing his shareholding down to 80%.

I havent been involved anything like this before which involves an non employee so an advice much appreciated.  Ive got the FRSSE 2008 here to have a look through.

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Someone can correct me if I'm wrong...

mackthefork |