Permissions required for revoking Ltd Co. shares

[TheFaQQer]

OK, but then that just leaves me with an account with something like £20k in it. What would happen to that?

If my wife were to demand the cash from 50% of the dividends for the last year, where would I stand on settling that outside of the company? That sounds like it could be horrible if she wants to hurt me. I guess I could actually not declare a portion of the dividends and instead increase my salary retrospectively so that her dividend income is approximately what I've been given her all along? I certainly hope it won't come to anything like that but who knows? Maybe this is getting too far from the original question.

When you declare a dividend, then you MUST pay it in proportion to the number of shares each shareholder owns (assuming that the shares are the same class, and the shareholder does not waive their right to the dividend money).

If your wife owns 50% of the company, and you've not paid her any dividends, then you need to get this sorted ASAP.

You can check with Companies House what proportion of shares are held by each party, IIRC.

[Clare@InTouch]

When you are not married, and have divorced, why would HMRC think that you are doing the splitting as an artificial way of avoiding tax, and then taxing you accordingly as if all the income was yours? You're not in a relationship any more, so can hardly be getting some benefit from the arrangement - on the contrary, in fact.

It depends - if you're paying her dividends through the company, therefore saving yourself money by not having to pay her maintenance from your own pocket, then you're gaining even though the actual funds aren't coming back to you.

[mouseorgan]

If you start backdating salary and re-naming dividends then you're potentially heading for worse trouble, especially if your wife's solicitor discovers you're changing things to prevent her getting her "fair share". You should have dividend vouchers which backup all the payments you made anyway, and salary is submitted monthly via RTI these days.

The £20k can sit there until you decide what to do. You could pay it to yourself as salary, pay it as a dividend to all shareholders, or leave it there until after the divorce when you may have more clarity over what you can do with it.

OK, I understand. thanks.

[mouseorgan]

It depends - if you're paying her dividends through the company, therefore saving yourself money by not having to pay her maintenance from your own pocket, then you're gaining even though the actual funds aren't coming back to you.

I'm taking periodic lump sums as dividends being shared 50/50 and then separately paying her maintenance from my personal account. Before this, we just shared the same bank account, which is still actually in a joint name.

[john@UKCA]

Howdy,

I'm in the middle of a divorce and need to revoke the 50% share allocation from my wise as obviously we're no longer a couple so can't claim the S660A tax allowance.

My accountant was happy to issue meeting minutes to reallocate the shares without anything from my wife or myself, but she believes she needs to sign something for this to happen legally. Nothing explicit was signed to give her the shares in the first place.

Any clues?

Thanks

Chris

Are you saying that your wife is happy to sign the stock transfer form (J30) transfering the shares back to you for 'nil' consideration?

[mouseorgan]

Are you saying that your wife is happy to sign the stock transfer form (J30) transfering the shares back to you for 'nil' consideration?

She was. Then spoke to her mother, and changed her mind.

[jmo21]

If my wife were to demand the cash from 50% of the dividends for the last year, where would I stand on settling that outside of the company? That sounds like it could be horrible if she wants to hurt me. I guess I could actually not declare a portion of the dividends and instead increase my salary retrospectively so that her dividend income is approximately what I've been given her all along? I certainly hope it won't come to anything like that but who knows? Maybe this is getting too far from the original question.

Frankly, if this is you only realising this, I would consider going through all the in's and out's of how your company works again to make sure there isn't anything else you might not realise.

you gave her the shares, they are legally hers, and she has every right to keep them.

From your original post though, it seems to indicate she is happy to sign them over, so just be glad she doesn't want them, in fact, you should thank her.

[mouseorgan]

Frankly, if this is you only realising this, I would consider going through all the in's and out's of how your company works again to make sure there isn't anything else you might not realise.

you have her the shares, they are legally hers, and she has every right to keep them.

From your original post though, it seems to indicate she is happy to sign them over, so just be glad she doesn't want them, in fact, you should thank her.

I don't know if she will or not. She's actually just demanded to see my company accounts for the last 3 years... I thought it was all going to be friendly...

I think as it goes for 12/13 I gave her something like 40% of the dividends in some form or other anyway, so maybe it won't be too painful. Not counting emotions that is.

[northernladuk]

I don't know if she will or not. She's actually just demanded to see my company accounts for the last 3 years... I thought it was all going to be friendly...

I think as it goes for 12/13 I gave her something like 40% of the dividends in some form or other anyway, so maybe it won't be too painful. Not counting emotions that is.

How can you give her a percentage less than she was due in way you can't explain? Surely she gets exactly what her share capital dictates by agreed and minuted shareholder meetings with associated dividend vouchers? Any other way is exposing you to huge risk isn't it?

It would have only been friendly if it didn't look like you were trying to defraud her. If you have cut corners or made a mess here I would have thought the only way out of this one is to play it by the book and fix it properly?

I think this is going to be incredibly painful.......

[mouseorgan]

How can you give her a percentage less than she was due in way you can't explain? Surely she gets exactly what her share capital dictates by agreed and minuted shareholder meetings with associated dividend vouchers? Any other way is exposing you to huge risk isn't it?

It would have only been friendly if it didn't look like you were trying to defraud her. If you have cut corners or made a mess here I would have thought the only way out of this one is to play it by the book and fix it properly?

I think this is going to be incredibly painful.......

Hmm. You could well have a point. I'm certainly not trying to defraud anyone. Just trying to be efficient. I tried and tried to get her to be involved in the accounts and she always refused and insisted on being ignorant of it.