I have a new client who set up his Limited Company with 4 shares. He has 3 of the shares and a third party has 1 share. The third party has put in £12,000 for his one share. The client is the sole director and has not paid for his 3 shares. I asked him to confirm that the £12,000 was payment for the share and not a loan and he confirmed that. It seems very trusting that a person should pay £12,000 for a quarter share in a new company - is this normal or should I be giving other advice?
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Shareholders
You could try getting confirmation from the other shareholder.
Are they connected?
Yes get the other shareholder to co confirm what his £12,000 is, but don't attempt to give him advice about what it would be best for him to say it was.