Client submitted own first annual return online to Companies House and on seeing a copy I queried the 1000 shares (100%) allocated to himself. On incorporation he only subscribed to a single £1 share. He is the only share holder and it is his own one man company. He was surprised and clearly he had made an error completing the return as he had not consciously issued a further 999 shares. On my advice he contacted Companies House and they assumed he had simply issued the remaining shares. He is not bothered provided there are no consequences. He has not paid for the shares.
Comments would be welcomed on the implications of this and whether in fact no harm has been done and can it be left as is or can and should it be corrected. In the former case I assume the accounts should agree with the Companies House record even though this was not intended. Thanks in advance.
Stephen Quay
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Well you can correct this
Stephen
The error on the companies house can be corrected by completing an annual return beofre its due date, (online).
As long as the client has not issued a for 88(2) 'Allotment of shares' for the additional 999 shares the correct positin in the accounts would be to disclose only 1 share being issued.
In short -
a) No need to amend the accounts to disclose the share holdings as 1,000 instead of 1. As this is not a true and fair view and will be misleading.
b) You can correct the Annual Return
c) No harm has been done
Call me on 020 8241 6642 or contact me via my website www.thefpllp.co.uk.
Regards
Jay