Reorganisation of ordinary Shares

Reorganisation of ordinary Shares

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Hello Everybody,

I am a new practitioner and haven't had much experience with the below situation and need input from more experienced practitioners on this forum.  I thank in advance for looking into this and any concrete suggestion to achieve the outcome.

Client formed a ltd company with himself as the sole shareholder with 100 ordinary shares a year ago.  Now he wants to add his wife as the holder of 50%.  How can he reduce his holding and create the equivalent holding in his wife's name.  Annual return is due this week and we want to achieve the same before it is filed. I need to know what forms do we fill with companies house to achieve this.  Understand this is not an easy swap(even it is meant to be) from a companies act point of view.

Appreciate your guidance.

Gladstone.

Replies (6)

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By blok
19th Sep 2011 16:14

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he gifts 50% of his shares to his wife.

no tax implications.

complete stock transfer form.

update share register and issue new share certificates.

show ammended details on annual return.

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PAH Accounting Devizes Wiltshire
By Phil Hendy
19th Sep 2011 16:21

Or issue shares

Alternatively you could issue 100 ordinary shares to the wife, thus giving 200 shares and 50/50 ownership.

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Accountants & Business Advisers
By Gladstone
19th Sep 2011 16:56

Many thanks for your quick response.

The option to issue further 100 shares and give 50/50 ownership looks appealing, although unsure whether this can be done during annual return filing.

Gladstone.

 

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By blok
19th Sep 2011 16:58

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the annual return is not a process for issuing shares, it just confirms what the actual position is.

if you are looking to issue shares, check out companies house website, they have some good guides on there.

alternatively if you have one, speak to your formations agent for co secretarial matters.(sometimes I do this).

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Accountants & Business Advisers
By Gladstone
19th Sep 2011 17:01

Thanks Blok! 

I'll check out and hopefull achieve this before filing AR01.

 

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By sarahhp
21st Sep 2011 16:02

Date annual return is made up to

If the annual return is due to be filed next week, you may have already passed the date by which the return is due to be made up to, in which case it is too late to issue new shares and show them on the annual return.

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