We are acting for a new business start up. Shares have been subscribed for based on a valuation of £4,000,000 of the business.
If an employee is to be issued with 5% shares and not pay for them, will the Shares Valuation division agree to a discount of the £4,000,000 valuation for a minority interest stake or ignore this on the basis that shareholders have invested based on the full valuation for shareholderings of less than 5%.
The company is yet to trade so arguably the shares are not worth anything but a market value has been established based on subscriptions of at least 10 other shareholders.
Would appreciate any thoughts.