Changing Share distribution

[SimonMac]

No, that's correct. You'll add their name onto the next annual return.

Does that mean the new shares won't exist until the next annual return, and I won't be able to dividends on them until then.

[Clare@InTouch]

I've been trying to add more shareholders via the companies house website, the form they keep mentioning (SH1) doesn't seem to have any mention of who the new shareholder is. Am i doing something wrong?

No, that's correct. You'll add their name onto the next annual return.

[SimonMac]

I've been trying to add more shareholders via the companies house website, the form they keep mentioning (SH1) doesn't seem to have any mention of who the new shareholder is. Am i doing something wrong?

[Craig@Clarity]

What is going to happen if there's a lot of money in the company? If the copany has, say, £60k in profits in the company, how is giving someone, effectively, 40% of that company for £1?

It's up to the director how much he wants to sell the share for. If it's issued at par then there could be potential to argue that a share was issued that had value but as husband and wife scenario is exempt from what was s660, there is no issue. It would be better to have all this in place on incorporation and even better if it was a transfer of existing shares from husband to wife as a gift or no consideration.

[Zoiderman]

The details will be recorded with companies house that there is a share issue in the company. If it's for 1 ordinary £1 share, get her to put in £1 for her share assuming they have been issued at par. Drawing up some minutes won't hurt.

The next time the companies annual return is done, you should see that she is put on as a shareholder.

Hope this helps

What is going to happen if there's a lot of money in the company? If the copany has, say, £60k in profits in the company, how is giving someone, effectively, 40% of that company for £1?

[Fred Bloggs]

The details will be recorded with companies house that there is a share issue in the company. If it's for 1 ordinary £1 share, get her to put in £1 for her share assuming they have been issued at par. Drawing up some minutes won't hurt.

The next time the companies annual return is done, you should see that she is put on as a shareholder.

Hope this helps

Thank you, that is very helpful.

[Craig@Clarity]

The details will be recorded with companies house that there is a share issue in the company. If it's for 1 ordinary £1 share, get her to put in £1 for her share assuming they have been issued at par. Drawing up some minutes won't hurt.

The next time the companies annual return is done, you should see that she is put on as a shareholder.

Hope this helps

[Fred Bloggs]

Sorry for the thread hijack, but my accountant has been less than helpful on this. We have issued an extra share to my wife by changing the shareholding at the Companies House website. We have no other paperwork so I will prepare some meeting minutes. Do we need to do anything else? Pay £1 to the Ltd Co for the share for example?

[Craig@Clarity]

There's no evidence to suggest that it would raise attention but you're right to at least give it a thought. I'd recommend perhaps drawing up some minutes to support the reason as to why the increase of shares is taking place.

[mr magoo]

Hi,

When I started my company in 2007, I was the sole shareholder. In 2009, I added the wife as a shareholder with her having 10% of the shares. I would now like to increase her share to as close to 50% as I can.

Is it ok to do this or would a 3rd change to the shareholding over 4 years attract attention from HMRC

Thanks