Buying out a Director

cityboyjim

I have a 50% shareholding in a small Limited Company.My Co Director has expressed a wish to resign.I have verbally agreed a sum to buy his shares .
Whats the legal route we have to follow in order to get this through .Is it an expensive procedure.Must I take on another director in a sleeping partner capacity or can I stay going by myself.I intend to retain 100% shareholding myself . Thanks guys .

Alan Shore

Well you need to complete a stock transfer form to get the shares into your name.

A company has to have at leaset 2 directors so you will need to replace the outgoing director. File a B10 notifying the CRO of the resignation and appointment.
You will also have to file an M1 notifying the CRO that the company is changing to a single member (shareholder) Company. Some filing fees but nothing to big.

seco

Your Memo & Articles of Association may require changing to allow for single membership. All companies in recent years have this provision in memo & arts but older companies may require their memo & arts to be updated. A simple procedure which can be handled by any of the company formation specialists.

dbran

Hi

Don't forget the possible stamp duty @ 1% on the transfer of the shares if it is for a value greater then €1000.

Kind Regards

dbran