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EIS encourages investors to hold shares in small higher-risk, unquoted companies by providing Income Tax and Capital Gains Tax reliefs. These reliefs can be valuable; however, they do require careful planning as over time the legislation has become increasingly complex. Tax advice…
The Companies Act 2006 abolished the concept of authorised share capital, but your company may still restrict the number of shares that it can issue by including a provision in your Articles. If your company was incorporated before 1 October 2009, the authorised share capital set out in the Memorandum of Association…
Even though it may be trading profitably, if a private company has accumulated realised losses on its P&L, this can prevent it paying out dividends. Previous to the Companies Act 2006, a deficit could not be eliminated until the creditors had been formally protected, which involved the Courts. The 2006 Act, however…
Most owner-managed companies will have just one class of ordinary share, so each shareholder will receive a dividend according to the number of shares they hold.
But what if the dividends you would like to pay do not correspond with the shares that are held? Perhaps your team has one or two founder entrepreneurs in addition to a management team…
Drafting the Articles of Association is one of the most important legal issues when setting up a company, but there is a way you can make it easier for yourself. When you brief your legal adviser, you are likely to have the same key objectives in mind that most business owners do…
An agent, unlike a distributor or dealer will not buy your products and sell them on. Instead he will act as your representative and sell your products in return for commission.
For an exporter, an agent avoids the issues associated with setting up a branch
Before involving expensive professional support, write down on a single sheet of paper, the key aspects of the proposed relationship; who is to do what and when and how and what payments are to be made. Make sure that the other party agrees this one-pager with you…
The most common arrangements are;
Life policies that pay proceeds to surviving business owner(s) on death (and perhaps on critical illness).
Cross option agreements that give the surviving business owner(s) the right to buy the shares from the deceased’s family using the policy proceeds – a ‘Call Option’…
What makes a successful business? A great concept definitely, an entrepreneur with passion and energy almost certainly, but perhaps most important of all – a highly focused and motivated management team to drive it forward.
You don’t have to be a Dragon’s Den entrepreneur to conclude that an important way to achieve this is likely to be by providing equity incentives to key team members…
Articles of Association can be long or short form. Until recently, the norm was the latter – 5 or 6 pages setting out key issues and incorporating the statutory ‘Table A’ – a set of standard default Articles. For companies incorporated after October 2009, Table A was replaced by a simplified set of default Articles known as the Model Articles…
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