Share classes

burgburg Experienced MentorGloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,419
Hi all,

I am familiar with the 'normal' ordinary share capital family company but I have a client who wishes to do the following:-

Two separate families (X and Y) are to be involved in the company.

Both husbands currently hold 50% of ordinary shares as initially income was to be slit 50-50.

For a short time family X is going to take more income than the other. To allow for this the husband and wife of family X want to have B class.

There isn't really an issue with income shifting as it appears to be not for this purpose.

I would like to confirm the process for doing this is as follows:-

Special or Written resolution signed by current shareholders to alter the mem and arts as needed.
File amended Mem and Arts, Special Resolution and form SH01 to Companies House
Minutes of a meeting actually issuing the new shares
Issue new share certificates

If so the only bit I am really unsure about is editing the mem and arts. Should this really use a formation house to edit them or can it be done simply enough?
Regards,

Burg

Comments

  • AK002AK002 Font Of All Knowledge Registered Posts: 2,492
    If it's only for a short time would a divi waiver not be the easiest way?
  • burgburg Experienced Mentor GloucesterModerator, FMAAT, AAT Licensed Accountant Posts: 1,419
    Have considered it but it isn't appropriate as it doesn't allow them the desired effect. Would make things far easier though.
    Regards,

    Burg
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