• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Shares with buy back rights

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Shares with buy back rights

    Time for plan B.
    New LTD will be created with a few people as investors.

    There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

    This is to protect the investors.

    Any implications w/r to allowable expense for corp tax when LTD buys back the shares.

    #2
    Originally posted by abz2020 View Post
    Time for plan B.
    New LTD will be created with a few people as investors.

    There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

    This is to protect the investors.

    Any implications w/r to allowable expense for corp tax when LTD buys back the shares.
    You need specialist advice here that no-one here is in a position to actually give you.

    Find a decent accountant and pay for their advice...
    merely at clientco for the entertainment

    Comment


      #3
      Originally posted by abz2020 View Post
      Time for plan B.
      New LTD will be created with a few people as investors.

      There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

      This is to protect the investors.

      Any implications w/r to allowable expense for corp tax when LTD buys back the shares.
      I *think* that a company buy back of shares is not an expense wrt to CT as it's all to do with capital investment. The only capital in a company is there after profit/loss.
      What you really need is a shareholders agreement. Legal advice is advisable to get this right.
      Something else to consider is that a company buy back of shares is gonna be difficult if you've taken all the cash out as dividends. It is probably worthwhile to allow any sale of shares to be bought by the remaining shareholders and/or the company.


      Originally posted by eek View Post
      You need specialist advice here that no-one here is in a position to actually give you.

      Find a decent accountant and pay for their advice...
      No. Find a decent solicitor. This is outside an accountants area of expertise.
      Last edited by Lance; 2 April 2020, 10:53.
      See You Next Tuesday

      Comment


        #4
        Originally posted by Lance View Post
        I *think* that a company buy back of shares is not an expense wrt to CT as it's all to do with capital investment. The only capital in a company is there after profit/loss.
        What you really need is a shareholders agreement. Legal advice is advisable to get this right.



        No. Find a decent solicitor. This is outside an accountants area of expertise.

        Sorry I wasn't thinking of your typical contracting accountancy firm - I meant a proper more general firm.
        merely at clientco for the entertainment

        Comment


          #5
          Originally posted by abz2020 View Post
          Time for plan B.
          New LTD will be created with a few people as investors.

          There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

          This is to protect the investors.

          Any implications w/r to allowable expense for corp tax when LTD buys back the shares.
          What would PSCONT do? That's the question.
          …Maybe we ain’t that young anymore

          Comment


            #6
            Originally posted by WTFH View Post
            What would PSCONT do? That's the question.
            every person has a different class of shares so that a mere 51% of the board can make the shares being 'sold' completely worthless.
            See You Next Tuesday

            Comment

            Working...
            X