case studies
 

Property management company – restructuring of shareholdings

We recently acted for a property management company, which had been handed over to the residents following the sale of the last property on the development and the transfer of the freehold from the developer to the management company.

Due to an error in the transfer, the developer remained a shareholder in the company that neither he nor the residents wanted.

We looked into possible solutions, and advised that the developer’s shares were transferred to two of the residents, with a further share issued to each resident so all residents had an equal holding of two shares each. This solution was acceptable to the developer and the company so we put this into action.

The benefits to the management company are that the residents now each have an equal shareholding in the company, and the developer no longer holds any shares in the company.

Sale of a business with no statutory books

We recently acted for the seller of a company’s shares where the statutory books had been lost. This meant there was no evidence of our client’s ownership of the shares.

The solution was to reconstitute the statutory books using Companies House and records, including board minutes and stock transfer forms, provided by our client.

Our client now had proof of ownership of the shares and was complying  with company law obligations on the keeping of statutory registers and records. Failure to comply can lead to criminal penalties for company officers - so our client was relieved to have everything brought up to date.