Shareholder liquidated

How do I remove shareholder from balance sheet?

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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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By johngroganjga
01st Oct 2017 06:33

What has happened to the shares?

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By Wanderer
01st Oct 2017 09:16

If the company shareholder is in liquidation & you haven't been notified of any sale / transfer then it probably still holds the shares.

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Replying to Wanderer:
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By thevaliant
02nd Oct 2017 01:37

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).

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Replying to thevaliant:
RLI
By lionofludesch
02nd Oct 2017 07:25

If the liquidation is still ongoing, why not get an existing shareholder to put in an offer to buy them for a nominal sum ?

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RLI
By lionofludesch
01st Oct 2017 10:07

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.

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By tom123
01st Oct 2017 11:21

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.

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Replying to tom123:
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By Montrose
02nd Oct 2017 15:31

Sorry, misread previous comment.

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By Portia Nina Levin
01st Oct 2017 15:33

You shouldn't have any shareholders on the balance sheet. A balance sheet is no place for shareholders to be.

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By victoriarchalmers
01st Oct 2017 16:54

The shareholders are NOT on the balance sheet ! The share capital is

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Replying to victoriarchalmers:
RLI
By lionofludesch
01st Oct 2017 17:01

And so it should be.

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By tom123
01st Oct 2017 17:25

In fairness, though, you did talk about shareholdings, not share capital in your opening post.

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Replying to victoriarchalmers:
By johngroganjga
02nd Oct 2017 07:53

victoriarchalmers wrote:

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.

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By Tax Dragon
02nd Oct 2017 08:31

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.

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Replying to Tax Dragon:
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By Portia Nina Levin
02nd Oct 2017 10:26

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.

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Replying to Portia Nina Levin:
By slipknot08
02nd Oct 2017 11:31

Absolutely delighted that you are back, PNL. I always enjoy your incisive technical analysis and indeed your incisive wit.
:-)

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Replying to Portia Nina Levin:
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By Tax Dragon
02nd Oct 2017 11:34

You're confusing liquefying and liquidating again.

Liquidating can result from sporting a pair of beer/prosecco goggles.

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