Company Assets Question

[SSRuK]

Hello,

I am struggling to understand an aspect of company law relating to company assets. Obviously since a limited company is its own separate legal entity, it is the legal owner of all its assets, not the shareholder. My question however is, other than through a dividend, salary, or directors loan, can a majority shareholder (75% share) by special resolution vote to transfer company assets to themselves personally? (e.g. vote to transfer expensive machinery to them as a person, or alternatively a rather cheap computer?)

In this situation, the company is using the model articles with no additional shareholder agreement. If more clarification is required, please do let me know.

Thanks!

 

[obscure]

No. The disposal of assets would be the perview of the company Director(s) not Shareholders.

 

[Highland Spring]

You have to be careful how that impacts on the business, for example dividends are illegal if there are not enough reserves to cover them.

 

[Lisa Thomas]

Sounds to me like it might be a distribution in specie. Best to speak to the Company's accountants about it. I would suspect that the other shareholders will need to receive dividend of equal value and the income will have to be declared/any tax paid in the usual way.