Hi, Thank you for your question and welcome. My name is ***** ***** I will assist you. When you say that thw valuation is small - is it pay value? or less than £1000? You could transfer the shares by agreement at pay value and avoid the valuation but the buyer would still have to pay stamp duty on the actual value. If the company bought back the shares that is a complex process - does the company have cash in the bank to buy back the shares or would it do so out of capital reserves?
Hi, Thank you. My apologies that was an auto correct error it should say "par value" - this is the same thing as nominal value. There is no automatic right to surrender shares, the company would have to buy them back. If the company bought them back at nominal value, does the company have the profits in its bank account to make this purchase. There are two types of share purchases where a company can buy its own shares, a purchases out of profit and purchase out of capital. A purchase out of capital has a set form and is administratively complex, the directors would need to file a solvency statement and the auditors of the company would have to file a statement, and you would have advertise it in the London Gazette and wait a minimum of six weeks. A purchase out of profits is far more straight forward.
Potentially the shares could be forfeited or surrendered if they are unpaid? Have they been paid for?
Hi, Thank you. If the shareholder only paid 30p for shares worth £1 each then surely the shareholder owes the company money for the shares? If that is the case the company can just make a call for the balance (70p) to be paid, the shareholder can ignore the call and when the call ends the shares will be forfeited. There should be a section in your articles to forfeit shares - do you have such a section?
Thank you. It is irrelevant whether the company is actually worth its nominal value for this purpose. If the nominal value is £1 then the company has £1 of capital for ever share issued, that it is the limitation of the shareholders liability to that the company. Therefore if the nominal value represents a limitation on the shareholders liability, and the shareholder under paid for the nominal value then the shareholder is still liable for the remaining balance, which can be called on by the company. You can create in the articles a mechanism to forfeit the shares by making a call for the unpaid nominal value - this is entirely legal. If the call for payment is unanswered or you mutual agree it wont be paid, the shares can be forfeited.
Hi, Thank you. There is no mechanism for just surrendering shares the company either has to buy them back and cancel them - this could be at less than nominal value if all parties agree or they can be forfeited on the basis that they are not fully paid.
Hi, Thank you. The company can buyback the shares at whatever price the shareholder is willing to sell at, it does not have to be at par value.