I am getting information ready for my IVA and am petrified as most people probably are.
I am concerned because I own 75% of shares in a private ltd company, they are really my mum's but when her alzheimers got worse she decided that I should have them in my name (my brother, her son died last year and left the shares to her). My worry is that the small business turns over £100k, my husband and I are directors although I do not receive payment (he does as he is the only employee). What will happen to the shares? I transferred them to my husband end of August, as I was concerned about my finances (I am not sure how the IP will view this), but they do not really have a value as such to anyone else. I am very worried that due to my finances my mum will lose my brothers business. Any help/advice would be appreciated.
Your IP really is only interested in your pay slip. The IP cannot really affect the business in a detrimental way, as it is its own legal entity.
With only a 100k turnover I assume that the post tax profit margin won't be very much, so I'd be surprised if they have any interest.
Hmmm ****ting shares around just before an IVA is questionable, but they are of little value so I'm going stick my neck out and say I wouldn't worry to much about it, in this case.
Hi! The paperwork is a bit nerve wracking! I'd tell your IP about the shares and let them advise you - that way you know you are acting by the book. Good luck with getting things sorted x
Being upfront is good an all that. But this post postion, of something that has not happened yet. I just wonder if it's best let sleeping dogs lie, rather than create a non obstacle, but just in this instance
I know I know but it's nagging me! I will always bow down to better opinion
Hi Jhambie, having recently gone through the process myself, and having my own company, I should think, based on the info provided, that your IP will only want to know what your net earnings (salary and dividend) are. Also worth remembering that your limited Co. is a separate legal entity to you as an individual.
May also be worth chatting to your accountant.
My opinions are just that: Based on my experience and being a self-employed IVA customer.
It is not correct to say that your IP will not be interested in the shares. The shares may well be an asset if the company has a positive balance sheet position. I am not sure why the assumption is that the shares are worthless - what I would be arguing is that you are effectively only holding them on trust for your Mum. Have you discussed this yet with the IP you have chosen to represent you?
The balance sheet todate is around £40k. I mentioned the shares to the IP who I have yet to have a full conversation with, only basic information has been passed to them so far. I have not had dividends or pay from the company and am worried about talking to the IP about it. My shares were 75% of the company, but my husband does all the work which is why I gave them to him when financial things started become difficult. The other shareholders are friends of my brother (who died last year) and no one is interested in running the company which is why we took over.
The reason why the shares have a limited value is that my husband would not run the business if someone else owned the company. The business is very specialised and we do not own 100%, and other shareholders are not interested in buying the shares and becoming involved (they mostly live overseas)
I have a full time job that pays well and hoped this would be all they would be interested in.
Should I resign as Director, I only went on because at the time we thought 2 officers were needed for the company (which we now know are not needed.)
I would have an open conversation with your IP before doing anything.It is vital and important that you receive the right advice and your IP will have the full facts
Clearly there are some important issues to address here, but I am sure that the share transfer can be addressed. It might be sensible for you to get the company accounts prepared up to date so that the value of the shareholding can be ascertained. Assuming your IP is usedf to dealing with trading businesses this should be fairly straightforward.
