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Treatment of investment

Sale of shares in a group Company and cash received in parent Company

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Good morning, this is more than likely a stupid question but would really appreciate some help.

We have received an investment from two employees who have paid cash to parent Company for shares in a new Company recently set up.  The cash was received before new Company set up and  is currently in captial within parent company however, this is incorrect.  I want to raise the share transactions but leave cash in parent Company.  Has anybody had experience of this please?

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By johngroganjga
09th Aug 2021 20:22

It’s obviously incorrect for cash received by the holding company in anticipation of it selling shares in its subsidiary to be credited to “capital”, as you put it. It obviously needs to be corrected. But what is your question about how it should be corrected? Is it not obvious that it’s proceeds of a sale of shares?

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