Can spouse (5% shareholder) control company if other 95% shareholder dies

[northernladuk]

The link kinda explains it.

[ASB]

I have a limited company and sole director (with no company secretary) with 100% shareholding.

My wife is permanent employee already earning higher rate salary.

I am concerned in case of demise and absense of Will, there will be no one to make decision about company and it will be too costly and painful to go through legal court proceedings.

I read that it is good to make your spouse (or whoever you want to benefit from company assets) company secretary who can appoint herself as 100% shareholder in case of sole director's demise but she needs to be paid atleast minimum wages to hold that position.
In my case, she'll be paying straight 40% tax and NI on it so no benefit

What if she's made 5% shareholder and me as 95% shareholder, will that give her enough powers to control the company affairs and assets in case of my death and no Will is produced?

Are there any complications and catches from HMRC point of view to make her 5% shareholder?

Appreciate your expert advice.

I have not read the other posts. But...


You do not "appoint" shareholders.

The shareholders own the company. On your death that will be dealt with by the rules. No will - intestacy. It will go where those rules decree. Spouse. Children. Other blood relatives.

Make a will.

Almost anything could happen. But one thing won't. There is no guarantee that your asset will go to who you would luke your heirs to be.

No other shareholder will suddenly be able to usurp their legal interests.

Did i mention a will

[ASB]

Surely you wouldn't need to make a will. As your wife she is first inline so your shareholding in the business will immediately pass to her should you die. A will would only be useful if you wanted to do something other than pass it to your next of kin...

It might. It might not. Depends on all sorts of factor. Inhertance is not automatic.

Believe me. It can be messy.

[northernladuk]

For 90 quid it's a no brainer

https://www.co-oplegalservices.co.uk/making-a-will/

[NotAllThere]

...
I am concerned in case of demise and absense of Will

You may have noticed some consistent advice in response to your question. MAKE A WILL. Do not rely on the intestacy laws. If you do not make a will you are doing your heirs a massive disservice, so get on with it.

[cojak]

We made a will as without one there's a limit to what your spouse will automatically receive before the rest goes to your family should they contest it. I think it was 250k, but that might have changed. Anyway generally the only thing I could guarantee Mr C to keep was the house and though I love my brother dearly and trust him, you just never know...

[pr1]

For 90 quid it's a no brainer

https://www.co-oplegalservices.co.uk/making-a-will/

£150

[northernladuk]

£150

The single most useful post you've ever made. Thanks.

[pr1]

The single most useful post you've ever made. Thanks.

Good site though, I've just signed up for one, do you have a co-op MGM code you want me to give them?

[TheFaQQer]

You should also check your company AoA to see what they say about who can make decisions. Just because you're a shareholder doesn't mean that you can make decisions as a director - you would need to be appointed first.