Need ltd company share advice

youcancallmeAL

Hi,

I work for a small ltd company. My boss want's to offer me a "25% percent share" in the company, but he is being a bit vague. My question is, can this be done (or does the system not work in percentages) and is it worth anything?

The company is doing pretty well but I assume I won't neccessarily see any of that? Nobody else owns shares in the company except for my boss (the owner/director). I am slightly concerned because he seems to think that tax is involved in issuing the shares and that I will have to pay this.

Anyone have experience of anything like this?

WHA

Not a lot of information to work with -

Basically, if he is "giving" the shares to you, i.e. you're not paying anything for them, then yes, you will have to pay tax on their value.

As to the other points, it depends on the type of shares - if there is only one share class and you are getting 25%, then you'll own 25% of the company and would be entitled to 25% of any dividends and 25% of any proceeds if the company was sold. If there are different classes of share, you'd need to know the full structure.

It all sounds a bit vague to me. I would suggest that your first action would be to get your boss to arrange a meeting with his accountant, your boss and yourself, to go through the proposal and get a full written summary of what is being offered. When you have the facts of the offer, I would suggest you take your own professional advice from a solicitor or accountant to make sure everything you have been told and the offer all makes sense.