Ive got a client wanting to form a new limited company. 2 of the people involved are straightforward, both directors and shareholders, so lets call them director A and B, and Shareholder A & B. The third guy doesnt want to be a director, but wants his already formed company to be a shareholder in the new one, lets call this limited company shareholder C.
Director/Shareholder A is putting in £50,000, B is putting in £75,000, and shareholder C (not a director) is putting in £25,000. Normally in companies I have formed in the past when all the shareholders are directors, I would probably have just have suggested allocating the shares in the ratio of 25:50:75, making 150 shares in total, and then put the money introduced to each directors loan account. However in this instance the company introducing £25,000 is not going to be a director.
Would it be then that the procedure would be to allocate 150,000 shares in the above ratios and therefore have 150,000 paid up shares and no money in the directors loan account? This would seem like a bad idea to tie up that money in share capital.
Or is there a different way to do this? This is the first time I have come across this kind of scenario, so any help would be appreciated!