Shares held in trust

Shares held in trust

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A current client runs a successful consultancy business.

He is toying with he idea of setting up another company along with two other to be engaged in insulation.
Both prospective "partners" have employment in the industry and do not want their involvement public.

Clearly my client can be the sole director but what about the shares?

I have no experience in having shadow directors or equity and don't know where to get the advice - does anyone have any advice they would care to share or perhaps point me to a resource?

Also if there are any pitfalls to avoid?

I spoke to the company who I use to form companies but they do not offer nominee service"because of the money laundering issues"

I've always been a "keep it simple" accountant and would prefer to continue in that vein.

Replies (4)

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By johngroganjga
04th Sep 2015 10:19

Isn't it for the individuals in question to find nominees to hold their shares for them, and isn't it they who need advice not you? How are you involved?

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By pauljohnston
04th Sep 2015 11:58

As I see it

there is nothing illegal in what is proposed but it may infringe the "partners" employment conditions.  I belive http://www.fcls.co.uk/ offer nominee services you can call them on 0203 039 3080 or in Bristol on 0117 910 4741

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By johngroganjga
04th Sep 2015 12:05

Employment

I agree. Presumably the reason for the desire for confidentiality is to conceal the breaches of their contracts of employment that they intend to commit.

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By King_Maker
04th Sep 2015 12:08

This should be relatively straight forward - so long as the participants don't fall out.

It is more of a legal question than an accounting/tax one.

 

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