Share (Mis?)Allocation - Cock-up or Conspiracy?

[ConsummatePedant]

My accountant (based near Birmingham) who I have used reliably for the past six years has just set up a new private limited company for me. He uses an agency based in London.

My company's Memorandum of Association arrived yesterday. The company is divided into 1000 shares (as requested) but one share has been allocated to some bloke in Kent! I am guessing (hoping) that this is an administrative error and can be sorted out on Monday.

However, could it be that the agency who registered the company are "pulling a fast one"? Or is it possible that it's a legitimate part of the set up procedure and that share will be transferred back to me?

I am starting a new contract on Monday 2nd April so I hope that this can be resolved within the week otherwise I'll have to look at alternatives to allow me to invoice my customer; perhaps joining an umbrella company.

Advice/suggestions/similar experiences welcomed.


[This is my first posting apologies if I screw up]

[Gonzo]

Kind of depends what happens to that share.

It is not unusual for company formation agents to own the shares when the company is formed but they will be transferred to you immediately.

I wouldn't worry about screwing up - with that nickname you will fit right in here provided that you live up to it

[philip@wellwoodhoyle]

Gonzo is right - the person named is almost certainly the formation agent - he will probably also be shown as the first director as well as shareholder. We will almost certainly have provided a signed share transfer form and signed resignation as director together with certificate of non trading. This is all normal stuff and nothing to worry about - it's the standard way of avoiding the "real" shareholders/directors (i.e. you) from having to make sworn declarations in front of solicitor and delays in getting signed documents from you. Just confirm this is the case by phoning your accountant and make sure you see the documents he has signed to extract himself from your company.

[ConsummatePedant]

Thx for the advice; I feel a lot more relaxed about it now - but obviously will sort it out on Monday.

[ConsummatePedant]

I spoke to my accountant who confirmed that it was a legitimate part of the set up procedure.

That one share (or "subscriber share") has already been transfered to me and the record of the transfer has been lodged with Companies House.

Thx again for the advice. Err, am I supposed to say something like "You guys rock!!!" (is that enough exclamation marks) and add a suitable emoticon? Maybe this one?

[Bluebird]

Probably what it was that the company you used bought a "company" of the shelf - that is to say the company already existed with the one share.

When you came along, the company dorectors resigned, the shares transferred and the name changed.

Some see this easier than going thriugh Co House to register a new company - although it truth with on-line incorporation you don't need to do that these days....

[ConsummatePedant]

Nice guess but on this occasion, no, they didn't rename a previously registered company. It was just that the agents had registered themselves as director, secretary and shareholder and then transferred rights to me for reasons of expediency.

Maybe I should have registered myself via the online process. I wonder if this is straightforward...




Will that be Brains SA?

[Bluebird]

Will that be Brains SA?

Ydw.