Latest News & Advice From Wisteria

Holding companies and subsidiaries

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Broadly speaking, a “group” is a family of companies linked by their shareholdings in each other. A company which is controlled by another is known as a “subsidiary” company while a company which controls another is termed a “holding” company. Groups are usually formed in order to take advantage of the increased level of limited liability, to achieve greater flexibility of business administration or due to tax reasons and circumstantial necessities. Read full article »

Issue and allotment of shares

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What is the difference between an issue and an allotment of shares?

The issued and allotted share capital of a company is the total amount of share capital that is actually in the hands of shareholders. “Issue” and “allotment “are used to describe the process of granting new shares in a company. Read full article »

Do you need a company secretary?


It is not compulsory for private companies to have a company secretary. Many private companies opt to have a director to carry out the secretarial functions, which can be cost-effective for small companies. It is important to know that where a company chooses not to have a company secretary, all reference to the company secretary should be removed from its articles and company paperwork. Read full article »

What is a dividend?


“Distribution” is the general term used to describe a payment made by a company to its shareholders based on their shareholding. A “dividend” is a distribution of a portion of the company’s earnings to a class of its shareholders. Usually, in smaller companies in which the shareholders are also the directors, a regular dividend is paid, because dividends can be more tax-efficient for both the company and the recipient. In larger companies, however, shareholders expect to be able to participate in the company’s profits. In this article I will outline the different types of dividends and will answer the most frequently asked questions. Read full article »

Joint Venture (JV)


Broadly speaking, a joint venture is a co-operation between two or more companies for a mutual purpose. This purpose could be commercial or charitable, short-term or long-term. If used in the right circumstances, a joint-venture could be a beneficial opportunity to combine both the knowledge and the resources of the members. In this article I will outline the key features of JVCs and answer the most frequently asked questions. Read full article »

FRS 102: How will this UK GAAP impact on your small business accounts?

The mandatory implementation of Financial Reporting Standard 102 (FRS 102) for accounts on or after 1 January 2016 is drawing closer. But if you are beginning to worry about what FRS 102 is and the implications it has for your company, or if you are just interested in knowing about this new UK GAAP, here is an overview of the important details.

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Tax Issues for a Startup Business

Have you recently incorporated a business or just started a new business? If the answer is YES, then it is important that you are made aware of the key tax consequences/issues that you may face going forward.

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Corporate Insolvency


Companies with financial problems face a number of difficult decisions about the best course of action to take. A company stands a better chance of recovery if it recognises its financial problems at an early stage and takes appropriate measures to resolve them before creditors take matters into their own hands. If a company enters into a particular insolvency procedure, directors also become a subject of specific duties. Read full article »

Trading Names (Trading as…)


The name a company registers at Companies House is referred to as its ‘company name’ and the one it trades under as its ‘trading name’. In an effort to prevent companies from disappearing behind different names, statute imposes requirements on the use of both types. In this article, I will focus on what trading names actually are and the regulations that govern them. I will then inform you on how to protect your company name and will raise your awareness of sensitive names. Read full article »