Share premium value, then hive up to Holding co

What happens?

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Hi,

Client had initial investment in trading co A - £ 150k for shares. One year later, holding company- B set up and share for share exchange agreed, therefore Holding co now only shareholder of trading co A

Further investment sought in Holding co  circa £ 350k.

My question is - what happens to the initial £ 150k sitting in Share premium on Trading Co A Balance sheet - should this be moved to amount owed to Holding Co, with the contra in the Holding co, or left as it, or indeed written off.

( Irrelevant, but all investment will be lost eventually as company no longer viable)

Replies (3)

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By johngroganjga
05th Jun 2019 15:59

Nothing happens. Why do you think something might?

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By Vile Nortin Naipaan
05th Jun 2019 17:14

Who's going to put £350K into a company that's no longer viable?

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Replying to Vile Nortin Naipaan:
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By murphy1
06th Jun 2019 08:06

It was put in 2 years ago, to allow the company to develop something. However, they weren't successful with the development

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