Hoping someone can help with be the below scenario:
Trading subsidiary has ceased to trade. Holding company is due to enter MVL this week to distribute assets.
Subsidiary accounts are currently as follows:
Debtor Intercompany with holdings ac £500k
Share capital £1
Share premium £499.99k
Effectively all money has been loaned to holdings and I want to clear loan account via dividend, obviously can’t do this out of share premium. How do I reduce share premium and what are the accounting adjustments once this is done?
BTW, the shareholder who was issued 1 share for £500k is not the holding company.