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
-
@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
-
Thanks so much.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 328 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 57 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 203 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 584 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership