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 »
“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 »
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 »
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.
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 »
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 »
A company is a legal person and thus the individuals forming part of it must undertake its management by making decisions. Shareholder’s investment enables the company to exist, however, the directors are responsible for the day-to-day business of the company. Here are The Top4 things you need to know about Company Directors, which will increase your knowledge and will give you a head start for a successful business. Read full article »
Shares are a form of company funding and can be held in the two most common types of company: private and public companies limited by shares. Shareholders get shares in return of investing in a company. These shares carry particular rights, the exact nature of which is defined by the “class” of the share and the company that issues them. Read full article »
The flat-rate scheme is an optional VAT scheme designed to reduce the administrative burdens for small businesses. Unlike the standard VAT accounting, the flat-rate scheme saves time by shortening the process of recording VAT on sales and purchases. Read full article »
In recent years many company decisions have been made using written resolutions, rather than the traditional time and money consuming general meetings. The Companies Act 2006 abolished the requirement for private limited companies to hold an annual general meeting (AGM) as the decisions passed by written resolution are treated as being passed at a general meeting. Read full article »