Family company share valuation
LouiseTonkin
Registered Posts: 2 New contributor 🐸
One of the shareholders of our client (not a director) died unexpectedly. His will states that his shares will go to the beneficiaries of his estate - also existing shareholders in the company.
The articles of association state that share sales should be at fair value but can this be dealt with as a share transfer at share cost price or does the company need to undertake a valuation process and the shares valued accordingly? I can't find anything under companies house or accounting rules.
Thank you
Louise
The articles of association state that share sales should be at fair value but can this be dealt with as a share transfer at share cost price or does the company need to undertake a valuation process and the shares valued accordingly? I can't find anything under companies house or accounting rules.
Thank you
Louise
0
Comments
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@LouiseTonkin This isn't a share sale, it is a transfer to beneficiaries under the terms of a will. There may be a valuation necessary if Inheritance Tax is payable, but other than that there is no change to the number of shares issued so a valuation would not be necessary.0
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Thanks so much.0
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