This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our privacy notice.

Happy together: Family company shareholdings

Shared from Tax Insider: Happy together: Family company shareholdings
By Peter Rayney, August 2021

Peter Rayney looks at key considerations when structuring shareholdings in a family company. 

Companies are often set up in a hurry, with no real thought being given to the commercial and tax efficiency of their shareholding structures.  

For various personal reasons, some family company ‘owners’ prefer to hold all the shares. As far as they are concerned, this gives them ‘total control’. In practice, overall control can be enjoyed by holding at least 75% of the voting rights since this would enable the ‘owner’ to pass special resolutions, vary its constitution and put it into liquidation. For effective day-to-day control, such as the appointment and removal of directors, determination of remuneration and dividend policy, it is only necessary to hold more than 50% of the shares. 

Sharing control 

Owner

This is one of our 2083 Premium articles

To see this article in full and unlock access to our complete library of 2083 articles click 'subscribe & unlock' below:
SUBSCRIBE & UNLOCK

Subscriptions include a 14 day free trial
+ money back satisfaction guarantee

Begin your tax saving journey today

Each month our tax experts reveal FREE tax strategies to help minimise your taxes.

To get Tax Insider tips and updates delivered to your inbox every month simply enter your name and email address below:

Thank you
Thank you for signing up to hear from us!