issue 50% share to investor

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This topic contains 4 replies, has 2 voices, and was last updated by  bababoy 11 months, 3 weeks ago.

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  • #3495

    bababoy
    Participant

    Good morning
    i have been reading this

    How to allot and issue new shares in a UK limited company

    I have company with 100 share £1 each.
    I have an investor who want to invest £10,000 and the company has £17k director loan owed to me.
    what would be the best way to do it.
    The new investor is happy for me to take 10 loan back from the company.
    thanks

    #3496

    Jonathan Lea
    Keymaster

    In this situation you could issue a further 100 new shares of nominal value £1 each to the investor so he would have 50% of the company. Make sure the terms of your deal (including the arrangement with the director’s loan) is recorded in a subscription agreement which you both execute before the deal completes / the investor transfers the £10k.

    #3497

    bababoy
    Participant

    Thanks Jonathan for your prompt reply.

    What would be the procedure if whole shares are sold for £20k and director loan is written off.

    thanks

    #3498

    Jonathan Lea
    Keymaster

    My answer would be the same, other than the consideration has increased! It sounds like you might like to book one of our £150 plus VAT fixed fee consultations (15 minutes reviewing relevant materials and questions, 30 minutes telephone consultation, followed by 15 minutes drafting follow up email confirming points). Please email wewillhelp@jonathanlea.net to book

    #3499

    bababoy
    Participant

    thanks will do

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