Hi Experts,
I need your assistance if you would be so kind. I have been attempting to work this out myself, but have been going over it so many times I fear I am not seeing the wood for the trees.
My company, lets call Bobby's Bits Ltd, was set up a few years back but left as dormant. I am sole director and shareholder with 100 ordinary shares.
I wish to activate this company but bring in a second director, lets call him Robert.
I would like for myself and Robert to have an equal footing with regards to dividends, but for me to retain 75% of the voting rights and control of the company.
How would I best accomplish this?
My thoughts were to keep the ordinary shares as they were, but issue 50 more to me and 50 more to Robert. Along with 100 non-voting shares to Robert? Is this advisable?
Thanks in advance.
Dean
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Replies (7)
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Who knows...
Sounds good to me. What does your accountant think?
Bit difficult to ask them as they don't exist as yet :) But I am sorting that out, this week I hope.
I wasn't initially sure whether it was accountants or legal people I needed advice from regarding shares, as it seemed to me to dip its toe in both pools as it were.
Legal
I wasn't initially sure whether it was accountants or legal people I needed advice from regarding shares, as it seemed to me to dip its toe in both pools as it were.
The assistance you need to implement your re-structuring is legal assistance. It would probably be good to get an accountant on board for other matters, but not for this.
Awesome
The assistance you need to implement your re-structuring is legal assistance. It would probably be good to get an accountant on board for other matters, but not for this.
Thanks again. Much appreciated.
You arithmetic is spot on, but to implement your restructuring you will need legal assistance to re-draft the articles giving each class of shares the rights you want them to have, and you would be well advised to have a shareholders' agreement as well.
Thank you
You arithmetic is spot on, but to implement your restructuring you will need legal assistance to re-draft the articles giving each class of shares the rights you want them to have, and you would be well advised to have a shareholders' agreement as well.
Would model articles require the same work?
Thanks for the advice, will do as you suggest.
We had some good advice and bought in a mem and arts package relatively cheaply for a client from www.companylawsolutions.co.uk/
Well worth talking to