If a share company goes bankrupt, do you lose your shares?

TheWaltons_3

The title says it all really.

My husband owns 1000 shares in a company that we have since found out, went Bankrupt in 1993.

Is it tough s**t?

CLAPTON

basically yes, you are the last in line for a payout after all the other creditors... so its likely (but not certain ) that there will be no payout.
is it a publicly quoted share?

webly

Essentially almost all companies you'll normally come across are 'share companies' as you put it.
When a company with shares goes bankrupt or is liquidated for any reason the outstanding debts are paid off and the assets sold or given away first, then as the very last act of the company before it ceases to be a legal entity is to pay whatever is left over in cash to the shareholders (this can be nothing of course).

If there was any money left over then the registrars of the company (information should be with or on the share certificate(s) if you have them) or the company secretary when the company closed down should be able to provide information on who to speak to. If it was a long time ago then it is unlikely there will be any left.

Good luck

amcluesent

Yes. But then with shares your losses are limited to the amount invested, even though you were part owners of the company you weren't liable for all its debt.

TheWaltons_3

CLAPTON wrote: »

basically yes, you are the last in line for a payout after all the other creditors... so its likely (but not certain ) that there will be no payout.
is it a publicly quoted share?

The company was called Ferranti International Ltd - apparently one of the owners or someone high up admitted serious fraud and the company went bust. Have dug around online and found an old Court case but it looks like it's tough!!

He dug the share certificates out of an old box of his stuff - luckily he has 148 shares in a company doing really well.. so we can sell them instead

CLAPTON

oh dear
a very sad case .. indeed Ferranti bought an US company ISC which was corrupt from top to bottom and brought down Ferranti.

no idea whether there was any value at the end but i very much doubt it.

Chrismaths

http://www.hmrc.gov.uk/helpsheets/ir286.pdf

http://www.hmrc.gov.uk/cgt/negvalist.htm

As you still hold the shares, you can carry forward the loss indefinitely. Links explain all.