I have a friend who has been pushing to become a shareholder in a limited company.
The owner (and shareholder) of the company has verbally agreed to giving him a 30% shareholding in the company and said he will write him a formal letter to confirm this.
Does any of this hold up to legal or tax scrutiny or is it only when it is formally registered with the CRO that the shareholding becomes valid.
I told him the date could be relevant for tax calculations down the road but I'm not sure.
Any inputs?
The owner (and shareholder) of the company has verbally agreed to giving him a 30% shareholding in the company and said he will write him a formal letter to confirm this.
Does any of this hold up to legal or tax scrutiny or is it only when it is formally registered with the CRO that the shareholding becomes valid.
I told him the date could be relevant for tax calculations down the road but I'm not sure.
Any inputs?