BTW - he is operating as a Limited Company.
Thank you all.
Apologies initial post was a little brief.
Shareholding at the moment is one share each between the four of them (subscriber shares) which I assume is not going to be a problem?
None of the Directors will be paid a salary
The company does not need a lot of investment but they could all put in say £10k which would be used for trading purposes, payment would be for new shares fully paid in cash
Currently held for personal use (owner has a couple of horses)
What’s everyone’s thoughts, is it achievable?
There are adjoining parcels of lands owned by others who are all part of the same agreement, could they not arrange a farming business collectively?
Thank you both, much appreciated, it appears I have been over thinking the situation. Is that also the case if the parent provides extended supplier credit terms (again no official agreement in place), is there any discounting required? If so, how would this work using the above numbers?
thank you for your comments, how about if there are no formal terms for the loan?
I thought that the loan had to be measured at its present value of future cash flows, if it cant be repaid on demand as there is insufficient cash, one would therefore need to discount it accoringly?
thank you, of the element that doesn't relate to P & L expenditure, is the capital element treated the same as goodwill? how does it work regarding a renewal of a franchise - say every 5 years?