Shares with buy back rights

[Lance]

What would PSCONT do? That's the question.

every person has a different class of shares so that a mere 51% of the board can make the shares being 'sold' completely worthless.

[WTFH]

Time for plan B.
New LTD will be created with a few people as investors.

There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

This is to protect the investors.

Any implications w/r to allowable expense for corp tax when LTD buys back the shares.

What would PSCONT do? That's the question.

[eek]

I *think* that a company buy back of shares is not an expense wrt to CT as it's all to do with capital investment. The only capital in a company is there after profit/loss.
What you really need is a shareholders agreement. Legal advice is advisable to get this right.



No. Find a decent solicitor. This is outside an accountants area of expertise.

Sorry I wasn't thinking of your typical contracting accountancy firm - I meant a proper more general firm.

[Lance]

Time for plan B.
New LTD will be created with a few people as investors.

There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

This is to protect the investors.

Any implications w/r to allowable expense for corp tax when LTD buys back the shares.

I *think* that a company buy back of shares is not an expense wrt to CT as it's all to do with capital investment. The only capital in a company is there after profit/loss.
What you really need is a shareholders agreement. Legal advice is advisable to get this right.
Something else to consider is that a company buy back of shares is gonna be difficult if you've taken all the cash out as dividends. It is probably worthwhile to allow any sale of shares to be bought by the remaining shareholders and/or the company.

You need specialist advice here that no-one here is in a position to actually give you.

Find a decent accountant and pay for their advice...

No. Find a decent solicitor. This is outside an accountants area of expertise.

[eek]

Time for plan B.
New LTD will be created with a few people as investors.

There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

This is to protect the investors.

Any implications w/r to allowable expense for corp tax when LTD buys back the shares.

You need specialist advice here that no-one here is in a position to actually give you.

Find a decent accountant and pay for their advice...

[abz2020]

Time for plan B.
New LTD will be created with a few people as investors.

There is going to be only one class of shares, but what I want is to make the shares marked with the rule that the company can buy back the shares for at least the price they costed when the company opened. Provided LTD has the cash.

This is to protect the investors.

Any implications w/r to allowable expense for corp tax when LTD buys back the shares.