Giving your secretary shares this Christmas? By Nichola Ross Martin

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.

Continued...

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Comments

"A" shares

Anonymous | | Permalink

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.

Thank you, Nick

Anonymous | | Permalink

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.

carnmores's picture

a complete sop

carnmores | | Permalink

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to tie employees to the business for minimal cost ok i suppose - the shares are subject to tax this should have been repealed in the PBR ( it was a budget so what was that Martin doing in the chair, useless in and out)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