Giving your secretary shares this Christmas? By Nichola Ross Martin

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Nichola Ross Martin, of the Practical Law Company revisits an "old chestnut"; giving shares instead of cash.

Cash is tight this Christmas, not least because of the effect that the cut in the standard rate of VAT has had on cashflow. Many companies have taken the decision not to award cash bonuses, so why not give your secretary some shares instead, and call them a long service award, or just a gift?

One company director is doing just that...

Jim Shaw is the chief executive and chairman of a Aardvark Enterprises Ltd (AEL), which privately owned, well, actually all owned by the rest of the Shaw family. Debs has been his loyal secretary for 25 years this December, but at the tender age of 50 she has no intention of...

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By Anonymous
08th Dec 2008 20:32

"A" shares
What happens if a company issues "A" shares and then pays a dividend on the "A" shares to its employees? The "A" shares have no voting rights nor any other rights exexpt a right to a dividend if the directors' wish to pay a "Christmas Bonus".

Who should pay the tax on the Christmas Bonus? and what type of tax is it.

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By Anonymous
08th Dec 2008 13:58

Thank you, Nick
Exit deals?
I will include a point or two about these in next week's episode, the presence of an exit arrangement may well change the nature of the shares - they could become readily convertible assets after all.

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05th Dec 2008 23:00

a complete sop
an old chesnut indeed more bonkers then conkers

costs the company nothing except possibly legal costs so possibly counter productive - trying to tie employees to the business for minimal cost ok i suppose - the shares are subject to tax this should have been repealed in the PBR ( it was a budget so what was that Martin doing in the chair, useless in and out)


FOR THE AVOIDANCE OF DOUBT I AM HAPPY TO CONFIRM THAT I REFER TO SPEAKER MARTIN OF THE HOUSE AND NOT OUR COLLEAGUES ON AWEB


ALSO WHAT ABOUT EXIT DEALS FOR THESE EMPLOYEES

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