Hi - first post here so I hope someone will be able to shed some light on this for me:
We have set up a limited company, with three owner-directors (brothers) with only a nominal initial investment and share allocation (we are not trading yet).
Two of the directors will be contributing equal startup capital while the third director is contributing less initially.
The intention is that while initially the shareholding will be split 40:40:20 that this will change over time to an equal shareholding, whereby the third director will be allocated shares in return for taking a reduced salary over time.
So I have 2 questions:
1. What are the mechanics for this agreement in practice, and who would be best placed to advise on a shareholder agreement? Solicitor, Tax Advisor, Accountant or Company Secretarial, or combination?
2. If we wanted to invest the entire startup capital through one director (who would initially hold 100% of the shares) in order to avail of higher rates of seed capital tax relief, is this possible? And how could would the future allocation of shares (for zero consideration) towards 33% each work?
Thanks in advance!
We have set up a limited company, with three owner-directors (brothers) with only a nominal initial investment and share allocation (we are not trading yet).
Two of the directors will be contributing equal startup capital while the third director is contributing less initially.
The intention is that while initially the shareholding will be split 40:40:20 that this will change over time to an equal shareholding, whereby the third director will be allocated shares in return for taking a reduced salary over time.
So I have 2 questions:
1. What are the mechanics for this agreement in practice, and who would be best placed to advise on a shareholder agreement? Solicitor, Tax Advisor, Accountant or Company Secretarial, or combination?
2. If we wanted to invest the entire startup capital through one director (who would initially hold 100% of the shares) in order to avail of higher rates of seed capital tax relief, is this possible? And how could would the future allocation of shares (for zero consideration) towards 33% each work?
Thanks in advance!