HCO LTDI S OWNED BY TWO DIRECTORS: AND OWNS 100% OF SUBCO LTD.
THE COST OF SUBCO'S SHARES WAS THE VALUE OF HCO ON INCORPORATION AND WAS THE CAPITAL INJECTED INTO THE BUSINESS ON COMMENCEMENT/INCORPORATION BY THE TWO OWNER DIRECTORS(WHO OWN THE SHARES OF HCO)
THE SHARES COST £250,000.
THEN :THE DIRECTORS WANTED TO WIND UP HCO AS IT HAD NO ROLE OR COMMERCIAL PURPOSE.
THE DIRECTORS SHARES IN HCO WERE TECHNICALLY WORTH 250,000
ONE DIRECTOR RECENTLY MARRIED AND WANTED TO LOCK IN THE SPOUSE (WITH LIMITED RIGHTS) SO SUBCO ISSUED FIXED DIV PREF B SHARES TO THE SPOUSE WITH NO VOTING CONTROL FOR NIL CONSIDERATION.
HOW IS THE VAULE/COST OF THE HCO SHARES LOCKED INTO SUBCO SO THE DIRECTORS HAVE SOMETHING TO SELL IF THEY FIND A BUYER?
OR WILL THE HCO SHARES BECOME WORTHLESS? WHILST THERE WILL BE TRADING ASSETS IN SUBCO?
CAN THE SHARES(AS THEY ARE THE DIRECTORS INVESTMENT IN SUBCO(THROUGH HCO) BE VALUED AS INHERENT PURCHASED GOOD WILL IN SUBCO?
Replies (5)
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@Penny
... at least it wasn't in BOLD.
I love the piccy, I may just pinch it for future use :)
All possible...
...just really hard to read the capitals.
You can do some form of share for share exchange or even a hive up I would imagine. Really one would like to see the accounts and understand the history a bit better, so this is not ideally answered in a forum. If you contact me I am happy to take a closer look.
Virtual tax support for accountants: www.rossmartin.co.uk