Small business advice

[McFsC]

Long story short my step dad is a partner in a small business, I want to buy his partners share, he has agreed. We have letters etc confirming price and he's happy to do it. The sum of money is relatively small, no major complications etc... How is the best way to go about swapping the money and informing Companies House of the share/Director change.

Solicitors? Is a letter signed by him and me enough? He's a decent guy at the end of his career so it's fair to both parties, however as with all money/business things there is a tiny chance of him taking the money and not signing the share/director cert form and me been stuck/conned.

Thanks.

[marshalla]

Similar thread from last week :

http://www.pistonheads.com/gassing/topic.asp?h=0&a...

Summary - CH don't necessarily need to know until the annual return is due, but HRMC may want some stamp duty and could get interested if the valuation of the shares is too low.

[McFsC]

Does he not, as a current director, need to sign the transfer of shares/ownership form to agree to it? My worry is I give him some money and it gets to the end of year and he says, "actually, nah." Then I'm stuck?

The value of the company is tiny, they barely turned a profit last year and had real cash flow issues, I am paying more than he invested 6 years ago so shouldn't be any issue with the value, I wouldn't have thought.

Thanks for pointing that topic out, good read.

[PurpleMoonlight]

Seller and purchaser sigh a stock transfer form as evidence of sale. Google for one.

Director resigns. Complete Companies House form notifying them of removal and issue to Companies House (may be able to do it online).

Complete Companies House form notifying them of appointment of new Director and issue to Companies House (my be able to do it online).

Notify Companies House of the change in shareholders on next annual Return.

[McFsC]

Thanks for that, sounds like something I was expecting... I'm just curious to how to be SURE* he will sign to not be a director, to sign share/stock transfer form after I have given him money.

I do trust him but want to protect myself a little - is a solicitor required or will a signed letter/contract by both parties stand up?

• The chances are slim of it not working out and problems arising, like I said I just want to be able to go to court and be able to prove he has conned me ( if he does ) rather than him possibly getting away with it.

[PurpleMoonlight]

If your concerns are that significant you probably should have a solicitor draw up sale and purchase agreement.

[McFsC]

Ok, thanks for the input.