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shares and bankruptcy

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    shares and bankruptcy

    Having recently setup my limited company I now have to deal with the share side of things.

    As I understand the paperwork, I now have 1 share in the Ltd company, but need to allocate more (do I?). What is the roundabout right number? 100, 1000?

    Also, my partner currently has an ongoing dipute with an ex-landlord for unpaid rent. He claims more than is owed and doesn't acutally know where she lives (he's sending letters to her parents). He claims he's push for bankkrupcy of her.

    Sorry to burden you all with that information, but it leads to the question...if she held shares in the Ltd Co, could they be assets in a bankrupcy claim?

    There is 2 questions in there!!

    #2
    IANAL but I'd say the share would count as an asset.

    He is unlikely to make someone bankrupt on the basis of back rent unless she was living in a palace. She probably has liquid assets which would cover any debt declared.

    You do not have to issue more shares.

    My recommendation would be to discuss this with your accountant if you are worried about it.

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      #3
      Sounds like the landlord is making threats he cannot carry out.

      Tell 'em to @#%$ off.

      Comment


        #4
        NAA but you could pay a divi of 50p on one share or £5 million. Only reason for issuing more would be if you want to pay dividends to someone not currently getting them or pay different amounts to each shareholder as divi must be proportional to shares held. (Assuming they are same class of share that is.)

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