Share ownership golf clubs

[wheeler]

Is it possible for a limited company to buy a redeemable preference share in a golf club and then for a director of that company pay the sub each year out of their own pocket.

The idea is that the company owns the share (and therefore pays for it out of pre-tax profits) but the employees pay the subs only.

 

[bazermc]

Is it possible for a limited company to buy a redeemable preference share in a golf club

Don't see any reason why not, what is the golf club? a limited company? that could issue a RPS. BTW why a redeemable share?

and then for a director of that company pay the sub each year out of their own pocket.

Seems fine, it wont not be caught as a being a personal expense of a director

The idea is that the company owns the share (and therefore pays for it out of pre-tax profits) but the employees pay the subs only.

I don't understand this, what is it paying for out of its pre tax profits?

 

[wheeler]

The idea is that the company owns the share (and therefore pays for it out of pre-tax profits) but the employees pay the subs only.

I don't understand this, what is it paying for out of its pre tax profits?

Redeemable shares: Shares which, on a stated maturity date, the issuing company will buy back for face value plus dividend. Being preference shares, they rank ahead of ordinary shares, but behind debentures, in any claim on the assets of the company.


The idea is that the company pays for the share and then the director has the benefit of membership of the club but only pays the annual sub fees himself. Therefore no BIK arises and the director did not have to pay the sign on fee.