I do the bookkeeping for a client. She has set up a new company but it has not started trading yet. She has a friend who wants to invest in the company. My client and her friend are both going to put equal amounts in and then they are going to start trading on Amazon.
Did she set up the company with more than one share at inception? Has she already paid for the share?
Esp if there is only share - you may need a special res to alter any provisions already set out in the M&AAs.
Are they expecting you to complete the paperwork for Companies House and supply them with any necessary Resolution wording?
If they are 50/50 shareholders who will have the casting vote in the event of any issues cropping up? Please do NOT let them say they are bessie buddies and will never ever fall out as that is ok until business and money are involved and its no good them trying to sort out things when they get in an almighty mess - it needs considering now. They really need a shareholders agreement - so would they also be asking you to help with such?
Are they then just putting a pound or £100 each in for shares with the rest as Directors loans? Will the DLAs attract any interest from the company? At commercial rates? Will you then have to assist them with the tax impact?
If you arent comfortable with this I would suggest they use an Accountant for this and any advice they may need.
-- Edited by Cheshire on Tuesday 1st of November 2016 02:52:15 PM
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
