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cb704
- Original Poster
- #1
Hi
I am currently involved in a small UK limited company as both share holder and director. The company has 4 sharholders each holding 1/4 of the shares. One of the 4 share holders has expressed an interest to sell their share to the others. No figure has yet been mentioned by them.
The company is less than one year old and generates very little income ( well below the VAT threshold) and has no assets therefore the shares are of limited commercial value. I would appreciate any advise on how the other 3 share holders who collectively own 3/4 of the shares should approach the issue or buying the other 4th sharehold out at the minimal cost. How is the sellers 1/4 share valued on a company that has yet to produce any accounts and is unlikely to show any profits this year. Is it the other shareholders job to put a price on the shares of the selling member or is it down to the seller to do this? If the price asked for the shares is not agreed by the other shareholders is there a rule of thumb or ethic that should be applied? Can the seller of the 4th share hold on for an overvalued price indefinatley simply to annoy the other shareholders?
Thank you in advance for any advise.
regards Tony
ps, we would be inclined to buy the shares back to the company and disolve them, therfore reducing the 4 equal shares to 3 equal shares.
I am currently involved in a small UK limited company as both share holder and director. The company has 4 sharholders each holding 1/4 of the shares. One of the 4 share holders has expressed an interest to sell their share to the others. No figure has yet been mentioned by them.
The company is less than one year old and generates very little income ( well below the VAT threshold) and has no assets therefore the shares are of limited commercial value. I would appreciate any advise on how the other 3 share holders who collectively own 3/4 of the shares should approach the issue or buying the other 4th sharehold out at the minimal cost. How is the sellers 1/4 share valued on a company that has yet to produce any accounts and is unlikely to show any profits this year. Is it the other shareholders job to put a price on the shares of the selling member or is it down to the seller to do this? If the price asked for the shares is not agreed by the other shareholders is there a rule of thumb or ethic that should be applied? Can the seller of the 4th share hold on for an overvalued price indefinatley simply to annoy the other shareholders?
Thank you in advance for any advise.
regards Tony
ps, we would be inclined to buy the shares back to the company and disolve them, therfore reducing the 4 equal shares to 3 equal shares.
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