What is a fair price for alphabet shares?

[pscont]

Situation requires for my LTD to issue a new class of shares besides the ordinary ones I started with.
I know alphabet shares are tricky matter, but this is the way to go.
What will be a fair price per share? What is the best way to calculate them?
Is it:
1. Remaining current contract value divided by number of alfa shares.
2. Current LTD capital divided by number of alfa shares.
2. Any combination of the above two.
3. Completely random figure.
4. Anything else.

Ideas appreciated.

[WordIsBond]

I know alphabet shares are tricky matter, but this is the way to go.

No doubt, if this is the case, you've
A) paid for expert advice on the question
B) challenged that advice, given the complications around alphabet shares
C) been persuaded, despite your reservations, that it really is the way to go

Since that likely won't be the case for most people here, and for those who it is they won't be selling newly issued alphabet shares and valuing them, I would strongly recommend that you go back to the professional who advised you to go this way, and ask how the shares should be valued. That person is obviously more of an expert than we are.

[Lance]

oh dear.........

As alphabet shares are not necessarily linked to ownership of the company then valuing them is quite moot.
If you have say 100 B class shares. And you have 100% of the A class shares, then the B class shares are probably worth nothing other than the amount of dividend you intend to funnel to them (presumably that is the sole purpose).

This is no doubt a tax avoidance strategy. A legal one, but may also be potenitally abusive (Google GAAR).
See also Arctic systems if the B class share opener is your wife. HINT: different classes of share don't work.


It's almost certainly a bad idea.

[jbond007]

$1082.80

[NCOTBAC]

oh dear.........

It's almost certainly a bad idea.

Yup and he's been told this in most of this threads with contrived attempts to distribute company money to his family. Looks like he's gone with his last one which was the alphabet shares despite the advice given.

He was also told to get professional advice a few times in that thread as well.

https://www.contractoruk.com/forums/...tribution.html

[Lance]

Yup and he's been told this in most of this threads with contrived attempts to distribute company money to his family. Looks like he's gone with his last one which was the alphabet shares despite the advice given.

He was also told to get professional advice a few times in that thread as well.

https://www.contractoruk.com/forums/...tribution.html

I couldn't be bothered reading OP's posting history for detail. Pretty much everything he posts is some hare-brained scheme to deny the public purse. No surprises he's asked before though.

Oh well. the more low hanging fruit for HMRC the better. They can keep busy with the bell ends, and leave the rest alone :P

[pscont]

I couldn't be bothered reading OP's posting history for detail. Pretty much everything he posts is some hare-brained scheme to deny the public purse. No surprises he's asked before though.

Oh well. the more low hanging fruit for HMRC the better. They can keep busy with the bell ends, and leave the rest alone :P

Thanks for the input, bell end.

[WTFH]

Moved to General.

[Old Greg]

75p or 55p

Heinz alphabetti pasta shapes | Waitrose & Partners
Heinz alphabetti pasta | Waitrose & Partners

[AtW]

Moved to General.