Share holding advice

tecstar

I'm looking for some advice. I have shares that have lost a lot of value, but I still want to hold on to them.  My current holding company is merging with another company and the admin fees will increase so I want to move my shares out. I think that I have to move to another company as I cant actually hold the shares myself. Is that correct? The company I have shares in has been delisted by the way, so not sure if that makes a difference or not. Thanks in advance.

DireEmblem

If you only hold shares and not funds, then it’s probably best you move them over to one of the free platforms.  Trading212 or free trade would also give you a free share if you go through the referral boards.  The free share would most likely be worth around £10, but they can go up to £100.

csgohan4

what shares do you hold, what platform are you with?

tecstar

csgohan4 said:

what shares do you hold, what platform are you with?

I am with The Share Centre and my shares are with LDP.

bowlhead99

I'd expect most  investment platforms or stockbrokers don't want to accept incoming transfers of shares that don't trade on a recognised stock exchange. They would have no interest in holding shares of a private company for you, which they couldn't buy or sell on the stockmarket and therefore couldn't make any dealing fees from you. As they can't broker a deal on a stock market, you don't need a stock broker. 

However, the existing shares you hold will be on the company's share register in the name of the broker whose nominee you hold them through. They should be able to contact the registrars and transfer the shares into a certificate in your own name. That process wouldn't be expected to be fee-free, but you could then hold the shares on a certificate in your own name and not need a broker or investment platform until / unless the company is re-listed (which is not something they could afford to do in its current condition)

From looking at Leed Resources website it sounds like they were hoping its Australian investment NXT Tec could eventually be listed on a stock exchange and sold, a long way in the future, if it has any success - but there are all sorts of uncertainties and they are only holding investments in their last accounts at a value of £80k. And that was before the Australian company, which had planned to raise a few million in pre-IPO fundraising, had to put those plans on hold due to Covid etc. If NXT were to do a successful fundraising, Leed presumably would suffer a large dilution of its ownership because it doesn't have any cash to participate in any more financing of NXT. Split between over 3 billion LDP shares, net assets of £90k is not much per share...

It may make more sense to just give the shares to charity (e.g. Sharegift works with most major brokers) so you can stop holding them and forget about them. Or perhaps make a negligible value claim with HMRC while the company still exists, and if successful take the capital loss to offset against future gains from other companies and forget about them.