Private company with only one issued share wants to sell 10% of business to an emloyee.
Is the best way to achieve to allot 8 more shares to current shareholder, create a new share class (B Shares) and issue 1 of those also to the current shareholder.
Then, in a months time when the employee has the money, transfer the one B Share to the employee witht he proceeds going to the other shareholder and creating a capital gain that will be just below his annual exempt amount.
Am I right in thinking that by doing this the two shareholders can be voted dividends seperately?
Are there any potential pitfalls?