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Company Shares
tryinghardtosurvive
Posts: 24 Forumite
I am in the process of winding down my businesses which in a weird way is a relief that I do not have to battle 18 hours a day anymore.
I have shares in another business (33%) which is is technically insolvent at the end of its first year of trading, not by a great deal i.e less than £1k. I do not have any hands on involvement in the business.
The business needs further investment which I am not in a position to do so I was going to sell my shares for a nominal sum to somebody who is prepared to invest in the business. Due to it being insolvent would the OR accept this transaction? I can prove by way of management accounts that it is insolvent and why.
Do not want to transfer the shares then find I have done it wrong but not going BR until November.
I have shares in another business (33%) which is is technically insolvent at the end of its first year of trading, not by a great deal i.e less than £1k. I do not have any hands on involvement in the business.
The business needs further investment which I am not in a position to do so I was going to sell my shares for a nominal sum to somebody who is prepared to invest in the business. Due to it being insolvent would the OR accept this transaction? I can prove by way of management accounts that it is insolvent and why.
Do not want to transfer the shares then find I have done it wrong but not going BR until November.
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Comments
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The OR will look at the transaction but would only be concerned if the shares were sold for less than their true value if the assets of the company are less than the liabilities then their should be know problem. it may be worth getting an accountant to value the business to shoe that the business was not worth anythingHi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0
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