Doesnt a ltd company need to operate and trade within the confines of its memorandum or articles of association which may or may not include trading shares?
Doesnt a ltd company need to operate and trade within the confines of its memorandum or articles of association which may or may not include trading shares?
Maybe it is, im not sure.
I thought that a ltd company can only legally trade in the way it was legally set up to trade. Notwithstanding having some investments, but for ltd company that was set up to a paibt and decordting business to ceast that activity and focus solely on trading shares - i dont know if that is legal wrt to companies act.
Thank you. I seem to recall that it was about 30 trades per month when I last traded but can not find any info on it now. I expect that it has not changed. That was a personal account so may not apply to a company.
There is no black & white definition based on the number of trades. It all comes down to the full circumstances involved, assessed under the 'badges of trade'.
Because you are seeking a favourable tax treatment, you will have quite a high hurdle to pass.
Considering the issues that may arise around the number of trades, and aside from understanding the reasoning for the "change" in how the company trades, why would one setup a LTD company to trade shares? Is the ordinary JOE route of paying 33% capital gains not the most efficient option?