Shareholer giving up shares

[Hobbiniho]

Hi there i currently am the director and 50% shareholder of a business the other director is the other 50% shareholder, the business isnt making any money and currently has debt to me in the form of loans from director, the other director wants to exit the business, what process is availiable for him to sign his shares over to me can he simple just gift them or do i have to buy them whats the legal term for "i gift my shares and dont want any money and i give up my rights as a shareholder", he was meant to put money into the company but has never done so and im sick of hearing the excuses, as the old saying goes never go into business with "friends", i feel like iv been taken as a bit of a sucker, the business does have assest that just about covers the value of the loan, if i can get them sold that is, there is no shareholder agreement but we do have an agreement for my director loan to be paid back although he has failed to keep up his end of the bargain to make money with the business nothing has been paid back

 

[WaveJumper]

keep it simple nothing to stop you buying them for 1p

 

[Baines Watson]

Hi there i currently am the director and 50% shareholder of a business the other director is the other 50% shareholder, the business isnt making any money and currently has debt to me in the form of loans from director, the other director wants to exit the business, what process is availiable for him to sign his shares over to me can he simple just gift them or do i have to buy them whats the legal term for "i gift my shares and dont want any money and i give up my rights as a shareholder", he was meant to put money into the company but has never done so and im sick of hearing the excuses, as the old saying goes never go into business with "friends", i feel like iv been taken as a bit of a sucker, the business does have assest that just about covers the value of the loan, if i can get them sold that is, there is no shareholder agreement but we do have an agreement for my director loan to be paid back although he has failed to keep up his end of the bargain to make money with the business nothing has been paid back

He can simply transfer the shares over to you based on a transfer agreement you both agree to and which determines the price, can simply be the original nominal value of the shares.

Just make sure all the due procedure as outlined in company law for this type of transaction is followed properly so there is no challenge at a later date i.e. transfer agreement signed, share transfer form completed, board minutes recorded approving transfer (if applicable), company's shareholder register updated and new share certificates issued.

Good luck.

 

[eteb3]

Are the shares fully paid up?

Is there a shareholders’ agreement?

 

[WaveJumper]

No agreement in place

 

[eteb3]

oh yeah thanks

If fully paid up then don’t just pay a tiny token price, so as to preserve any future equitable claims if need be.

If they’re not fully paid then you may well be acquiring a net liability in which case taking that off his hands should be consideration enough