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24 May 2011
Issue: 4305 / Categories: Forum & Feedback
Ms A, Ms B, and Ms C own a successful company, but their involvement is now limited to board meetings and strategic decision-making. Ms C wishes to gift 90% of her shares to her husband

I act for a successful limited company that is owned by three shareholders Ms A Ms B and Ms C whose involvement is little more than attending monthly board meetings and strategically overseeing the trading business. Two of the shareholders Ms A and Ms B have recently gifted some shares to their husbands.

The third shareholder Ms C would like to gift 90% of her shares to her husband but has a substantial loan for the original purchase of the shares in her own name on which she claims interest relief. The bank will not alter the loan arrangement other than to put the loan into the joint names of the wife and husband.

My understanding is that in this situation there would be an interest restriction for any claim by the husband....

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