Is there a simple way to close a holding company with a share premium account?

Is there a simple way to close a holding...

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A director and sole shareholder of a private limited company pays £100,000 for two £1 ordinary share and as such the company has share premium account of £99,998. This company then invests in another company, buying two £1 ordinary share for £100,000 and as such has  a similar capital structure of £1 share capital and a share premium account of £99,998 with the holding company being the sole shareholder.

It has now been decided that the holding company is superfluous and that the director should take direct ownership of the second company and the holding company closed down.

Is there a simple way to do this given that they have similar capital structures? Can there be a share for share transfer or do I have to deal with the two procedures as two separate exercises? What are the implications of reducing the capital in accordance with CA2006 s641 given that the holding company has an invested cost of £100,000?

Any thoughts or suggestions would be greatly appreciated.

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By johngroganjga
14th Apr 2015 11:56

All you need is a liquidation of the holding company and a distribution of all its assets to its only shareholder. I am not sure what the point of a capital reduction would be.

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