Our general advice to clients about to enter bankruptcy with small shareholdings is to sell them (for market value) before hand, as it can be expensive to deal with the Official Assignee after bankruptcy adjudication. The Official Assignee can insist on Independent Valuations, and the whole process becomes costly with more correspondence with solicitors and accountants etc.
Generally a small minority shareholding of 5% would have limited value. However, it could have substantial value if there are, say, just two other opposing shareholders with 47.5% shareholdings each and one of them wishes to obtain majority control.
Under the standard Articles of Association adopted by most companies prior to the Companies Act 2014, the Official Assignee automatically steps into the shoes of the bankrupt shareholder.
In practice, a 5% shareholding has practically no value for most SMEs, so the OA is unlikely to have interest in them, as the costs of valuing them and selling them would outweigh the benefits.
Jim Stafford