What is a Public Company Limited By Shares?
If you run a successful private limited company and are looking to transition to public status, it’s important to understand the implications of your decision and the obligations involved. In thie guide, we explain the benefits and risks of becoming a public limited company, together with the additional administrative and regulatory requirements that must be […]
Essential Guide to Alphabet Shares
Alphabet shares are the different classes of shares issued by a company using different letters to differentiate between them, for example ‘A’, ‘B’ and ‘C’ shares. Allocating these varying share classes allows a company to attach different rights to each class, allowing them to be used for different purposes. This guide to alphabet shares helps […]
Guide to Issuing New Shares
Share issue is the process whereby a company creates and issues new shares, usually to raise finance, bring in new business partners or grow the business. Issuing new shares in a company has implications for existing shareholders as the share structure may be altered. This practical guide to issuing new shares helps UK businesses understand […]
What are Bearer Shares?
Bearer shares are unregistered securities in a company, which are wholly owned by the holder of the physical share certificate, the bearer, hence the term ‘bearer shares’. Although these types of shares have certain advantages, their use is declining worldwide because of the potential for misuse and are in fact only still recognised by a […]
Loans to Shareholders Rules
It is not uncommon for business-owners to want to borrow money from their company from time to time, and it is important to know how these types of loans work in practice. The following guide to the rules on businesses loaning to shareholders, or director-shareholders, looks at what is allowed, what interest should be charged, […]
What are Preference Shares?
Preference shares hold status as a special class of share, affording specific advantages to those purchasing them. The following guide on preference shares looks at what these are, the different types, how these differ to ordinary shares, and how preference shares are treated in the event of bankruptcy. We also provide a useful summary of […]
Enterprise Management Incentives: EMI Scheme Guide
Enterprise Management Incentives (EMI) are just one of a number of tax-advantaged employee share schemes allowing employers to share company ownership with their staff. The EMI scheme is specifically aimed at small and medium-sized enterprises (SMEs), helping SMEs to recruit and retain the key talent that they need to scale up effectively in an otherwise […]
What is Ordinary Share Capital?
When running a limited company, it’s important to understand the different legal concepts involved, from both an accounting and company law perspective. In particular, a number of key UK tax provisions turn, in part, upon the meaning of ‘ordinary share capital’. Equally, it’s important to understand the benefits and drawbacks of ordinary share capital, when […]
What is an Employee Share Scheme?
As an employee, you may have the opportunity to acquire shares in the company that employs you. This is known as an “Employee Share Scheme”. Below we look at how Employee Share Schemes work and what tax advantages you will benefit from when you acquire, or dispose of, employment-related shares. What is an Employee […]
How do Employee Share Schemes Work?
Many employers offer employee share schemes to attract and retain top talent by ensuring both employee and employer interests are on the same path. With strict and detailed HMRC legislation to adhere to, however, it is important to fully plan an employee share scheme before it is put into place to ensure tax compliance. So […]