Minority shareholder in a private limited company was a company that has now gone into liquidation. How do I remove shareholding from balance sheet, disclosure required etc???
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If the company shareholder is in liquidation & you haven't been notified of any sale / transfer then it probably still holds the shares.
In theory, the liquidator should approach you in due course to (presumably) try and realise this value.
Of course, if this value is low or the liquidator simply doesn't know about it this may never happen. What happens at the end of a liquidation process if the shares haven't been transferred or realised I can't guess, though I suppose in theory the Crown will then own them (and you can approach the Treasury solicitor to resolve).
If the liquidation is still ongoing, why not get an existing shareholder to put in an offer to buy them for a nominal sum ?
Whatever happened to the shareholder company, the shares in your company are not cancelled so no removal is required.
Try to think of it in terms of some other asset. If a company holding a building was liquidated, would the building be knocked down ? No - it would be sold for its market value. Ultimately, in the same way, so will this shareholding.
I wonder if the OP is trying to do something with an interco loan, or something?
Shareholders, as such, are not shown on balance sheets.
You shouldn't have any shareholders on the balance sheet. A balance sheet is no place for shareholders to be.
In fairness, though, you did talk about shareholdings, not share capital in your opening post.
The shareholders are NOT on the balance sheet ! The share capital is
I think everyone knows that. It was YOU who asked how to remove a shareholder from the balance sheet.
A liquidator is the corporate entity's equivalent of an executor.
I say that, presuming that you wouldn't ask this question if the shareholder was an individual who had died.
I suspect the shareholder would still need to be removed from the balance sheet. The last thing you want making a mess of your balance sheet is a deceased shareholder spewing bodily fluids over your current assets.
Absolutely delighted that you are back, PNL. I always enjoy your incisive technical analysis and indeed your incisive wit.
:-)
You're confusing liquefying and liquidating again.
Liquidating can result from sporting a pair of beer/prosecco goggles.