FINANCE
Hear it from the experts …
Be careful when issuing company shares
I have seen small companies with a share capital of £ 40,000 upwards , which can create a debt owed to the company for unpaid shares , and effectively removes virtually all the benefits of limited liability .
Example : With a share capital of £ 100 , if the company goes into liquidation , the shareholders can lose the value of their shares . This means they might have to pay £ 100 personally to the creditors . With share capital of £ 40,000 , the risk becomes £ 40,000 !
In order to cancel shares issued in error , the Directors must :
1 . Draft a Special Resolution cancelling the shares which must be approved by the shareholders
2 . Draw up a statement of solvency confirming that the company can pay its debts and will be able to do so for the following 12 months
3 . Confirm that the solvency statement was made not more than 15 days before the resolution was passed – and provided to the shareholders .
4 . Complete a form SH19 and send to Companies House – with the other three documents .
Then , the shares will be cancelled and monies can be repaid to the appropriate shareholders – or the value of the cancelled shares can be used to clear / reduce the amounts owed for unpaid share capital – which brings the share capital down to a more practical , and safer , level .
Peter Bromiley ACA AMS Accountancy Ltd , 01793 818400 www . ams-accountancy . co . uk / about-us / ask-ams
WATERSHEDS SECURE MAJOR DEAL FOR WAYFINDING COMPANY
Swindon-based corporate finance specialists , Watersheds , has successfully completed the sale of a leading UK wayfinding company to multi-award winning international architecture and design group , Benoy .
Ask AMS Advice for small businesses AMS Accountancy Ltd . 01793 818400
Should we set up our family business as a Partnership ?
There are many reasons for not choosing a Partnership in your position , for instance :
They are less tax efficient than Limited Companies Partners must pay Class 4 National Insurance All Partners are responsible for all debts Partnerships can result in disagreements if there is no legal agreement . ( A Limited Liability Partnership could be better ).
Here are some advantages to a Partnership over a Limited Company structure :
Income can be apportioned more flexibly between Partners ( but please get a legal agreement ) The rules are less rigid than for Company dividends . Partners ’ cars can be more easily used to save tax .
Peter Bromiley ACA
www . ask-ams . co . uk
@ AMSAccountancy www . ams-accountancy . co . uk
Pictured from left to right : Wendy Lam and Sue Green
Watersheds represented Holmes Wood whose award winning portfolio of work includes designing wayfinding strategies and graphic design solutions for the Tate Modern , The National Gallery and The Natural History Museum . Alexandra Wood of Holmes Wood , said : “ We are delighted to have worked with Watersheds . Finding the right buyer was important to us because we have built this business and its reputation since we established it in 2000 . It was essential the buyer understood the vision we have for the business going forward , and shared our culture and ethos . Watersheds understood this , working hard to meet our needs . “ Selling our business was a big decision and Watersheds were able to advise and support us throughout the process .”
The acquisition means that London headquartered Benoy Group , the parent company of multi-award winning international architecture and design studio Benoy , can now add wayfinding expertise to its portfolio of services , realising its vision to become a multi-boutique design leader , and provide the very best in cutting edge design .
Wendy Lam , Partner at Watersheds , said : “ This deal was all about finding the right buyers for our clients ; somebody who understood the business and appreciated the potential it has to grow and , more importantly , an organisation who had a cultural fit .
“ It was clear from the initial meeting that Holmes Wood and Benoy had a lot in common , and that the services provided were complementary . We are pleased to have initiated a deal which has led to the joining together of two highly regarded British design brands , enabling Holmes Wood to retain its individuality while integrating Benoy ’ s design philosophy , operational strengths and global reach .” Expert legal advice was provided by regional law firm
Thrings . Thrings corporate partner Simon Hore , senior
corporate partner John Davies and trainee solicitor , David Geller advised Holmes Wood on the corporate aspects of the deal .
Simon said : “ Holmes Wood ’ s world-class wayfinding and signage skills make the perfect addition to the Benoy Group ’ s design business . Thrings is delighted to have advised Alex and Lucy on all legal aspects of the transaction and we are glad to have met the tight timescales involved . We wish Holmes Wood continued success in the future as part of the Benoy Group .”
For more information contact Sue Green on 01793 719788 or email sue . green @ watersheds . ltd . uk
www . watersheds . ltd . uk
16 THE BUSINESS EXCHANGE 2017