SHARE CAPITAL - CANCEL OR PURCHASE

SHARE CAPITAL - CANCEL OR PURCHASE

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New client with limited company. Incorporated in Nov 2009 but didn't commence trading until Feb 2011. Came to me initially with 3 directors and equal shares. The accounts have been completed with 3 shares. The annual return is now due to be completed and we have looked at the previous one (which was completed by one of the directors) and the share capital is showing as 4 with 25% to each director. I have contacted my client who now informs me that there were originally 4 directors with 1 share each but that he resigned in Dec 10 and he 'didn't know what to do with the share'!!!  Why he didn't think it was relevant at the original meeting to inform me I am baffled!!

Help!! My question is what do I have to do to alter the share capital to the correct 3 shares. The share that was issued to the 4th director was never paid for.

As always many thanks

Lugalugs

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By cparker87
14th Sep 2012 23:24

Didn't you check?
I would have bought you might have checked the Annual Returns and other filings as a matter of course during due diligence, particularly before preparing a set of Accounts!

You cannot overwrite an Annual Return. best you can do is make another Return for the day after .

Realistically though you should be amending the Accounts to reflect the scenario, considering Dividends issued and ensuring all paperwork t removes the Shae/Director is done present day, otherwise you're kinda creating fraudulent papers.

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