- Original Poster
- #1
I'm founder and 50% shareholder of a UK business. I've moved away from the business and would like to return my shareholding to my business partner as part of the settlement.
Right now, those shares aren't worth a lot of money, i.e. I doubt anyone would pay much for them. According to the shareholder's agreement The Company is a private company limited by shares and has an authorised share capital of £10,000, divided into 100,000 ordinary shares of 10 pence each 50,000 of which are issued and fully paid.
Is it possible to give these back to the company for free? Will that value the company at £0? Are there any side effects for me or the company? There's nothing untoward about it, but if I were to give them back for nothing that might look odd to the tax man.
Ideally I'm looking to pay my way out of a bank overdraft, while dropping my shareholding and resigning my directorship. Not sure of the best way of doing that. Maybe everything's fine, but my business partner wasn't so sure.
Advice appreciated.
Right now, those shares aren't worth a lot of money, i.e. I doubt anyone would pay much for them. According to the shareholder's agreement The Company is a private company limited by shares and has an authorised share capital of £10,000, divided into 100,000 ordinary shares of 10 pence each 50,000 of which are issued and fully paid.
Is it possible to give these back to the company for free? Will that value the company at £0? Are there any side effects for me or the company? There's nothing untoward about it, but if I were to give them back for nothing that might look odd to the tax man.
Ideally I'm looking to pay my way out of a bank overdraft, while dropping my shareholding and resigning my directorship. Not sure of the best way of doing that. Maybe everything's fine, but my business partner wasn't so sure.
Advice appreciated.
