Question about shares

Nov 07, 2017 0 Replies

I know of a small company which has recently increased its share capital ve ry slightly by creating 100 shares at 1p each to two people which have no v oting rights and only a discretionary right to dividends. The two people ha ve got essentially the same sort of shares but in different "classes".



Whey would anyone want to sell - or buy - such a thing? The new shareholder s aren't directors or even employees as far as I can tell.



My only thought is that it might be a sneaky way to pass money to people wi thout involving NIC or possibly VAT on services.



Or could there be some other reason?



I don't think I should publish the name of the company here, but will if so meone asks me privately.


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