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Reconstruction

30 October 2012
Issue: 4377 / Categories: Forum & Feedback , Companies
A husband and wife and two sons carry on a building business through two companies; the first owned by the parents, the second by all four of them

My clients are a husband (A) and wife (B) and their two adult sons (C and D). They carry on their building businesses through two limited companies: Y Ltd and Z Ltd.

Y Ltd is owned jointly by A and B while Z Ltd is owned by all four of them in almost equal shares. They all work in Y Ltd.

A and B wish to gradually retire from the business and as a first step in that direction they would like the sons to be “equal” shareholders in Y Ltd in the same way as they are in Z Ltd. Y Ltd has net assets of £100 000 and goodwill is valued at £70 000.

It builds residential properties and has a useful National House-Building Council (NHBC) record so it is desired that the company continues in business.

To me the obvious route appeared to...

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