Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. I am a company law expert. Can I clarify one point, if Company A is not going to receive a shareholding and/or have its contribution registered as a loan, does the second director just expect Company A's contribution for free? Kind regards AJ
The intention is for the company A to receive income from the proposed 20% eventually, but at the moment company B is not bringing any income, only expenditure. So, at the moment, all expenses paid for by the company A on the project, are recorded as a loan from A to B, which could be then converted into the investment. The main concern is for the company A to get maximum value out of the project, which is essentially, company A's baby.