Limited Company

NGolden

For a limited company with 2 shareholders, if one wants to get out of the company, How do they go about it?
Can they sell their share?
Can they take their money back out of the company?
Or can they just transfer their share over to the other shareholder?
I have tried to find this out from the companies office, but have got nowhere.
Any advice or ideas would be a great help.

Gordon

Before I answer this, can I ask, how did you find this precise place to post in? Did you find it from the mail you recieved from us after signing up, or from Google maybe?

NGolden

Hi

I just asked the question in google and it led me to boards

Niamh

Gordon

Did it bring you to this forum or did you find this Helpdesk from a link on the top or bottom of the page?

Hrm.. actually I think I'm going to move this thread to the correct forum as it would be better off in the Business forum.

Hopefully the people frequenting the forum I am moving this to will be able to give you guidance.

dbran

Hi

You can sell your share to the other shareholder. You will need to make the company a single member company. if the company has traded there may be tax issues on the sale of the share.

You may still be a director of the company. Currently an Irish company must have a minimum of 2 directors. You cannot resign as a director if to do so would leave the company with less then 2 directors.

Whether or not you can take money back out depends on the circumstances.If it is classified as a loan then you can take it out, if it is classified as share capital then you cannot. If the company is insolvant and about to be liquidated then taking the money out could be viewed as preferential payment of creditors.

Kind Regards

dbran

wishful thinker

+1 with dbran

also note

yes can sell shares to

• other director
• back to the company, if the other director (& shareholder) does not have the funds to buy those shares.

The possible tax implications for each are:

• seller - CGT
• buyer - Stamp Duty

Is this a family company? Are the directors directly related?

Also, there are tax efficient ways to extract cash from the company for the director (shareholder)

• if there is an existing director's loan (company owes the director money)
• termination payments - if the director worked in the business on a FT basis
• through the company pension

Sparky J

To dbran (again) or others,

I had intended to do the short term back to work scheme but have recently decided instead to use the next few months upskilling doing training courses and maybe do a FAS WPP for some further experience in my relevant area and assuming I don't find any PAYE work in that time hopefully be approved for the main BTWEA scheme once i've been unemployed 12 months.

Seperate to this self employed business I had also intended to become a Director/Shareholder (<15%) in a newly formed ltd co. too (and prematurely signed on as director, haven't given my PPS no. yet though). This shouldn't have been an issue with the STEA scheme (i think) because that allowance would have finished before the company started making a profit and I earned anything from the co.

By waiting for the BTWEA scheme though (which would give my self-employed business a much better chance of success) I think I will have to resign as director and transfer my shares to another director and maybe rejoin as director in a year or something or is there a way in which I could stay on as an inactive director and just transfer my shares.

Would a solicitor or an accountant or other be best familar to discuss this with?

dbran

Hi

You are best to talk with one of the employment partnerships regarding this. They will give you the best advise as they deal with this every day.

Kin Regards

Sparky J

Thanks dbran,

Spoke to a partnership officer about this when enquiring into the STEA scheme and he seemed to think that it would be OK as the self-employed business and ltd company are completly seperate.

But my gut feeling is I could get into difficulty with the SW when the tax returns are done at the end of October if I have claimed expenses with the ltd co.

I think my only option is to resign as director/shareholder and invoice the company through my self-employed business until the allowance finishes and then hopefully rejoin as director/shareholder again.