deferred share agreement

F

flojoryder

Guest
My boss has offered me the right to subscribe to shares in x limited. however x limited is a single member company, which is wholly owned by x holdings limited. I did not think it was possible for me to own shares in x limited as it is a single member company. Can someone please help me clear this up.
 
It is possible for a single member company to change to a multi member company. All they have to do is file an M2 form and make the necessary amendments to their Memorandum & Articles of Association. They also have to file the B5 for whatever shares are allotted to you and a B4 Form if they are making changes to the share capital(if by your subscription they are creating a new class of shares) Its actually simple from a company secretarial point of view, but what I would be more concerned about is what the rights attaching to the shares are.

What you really need to know if he is offering you a different class of shares than those already held by X Limited, and the varying rights attaching.

I would definitely get a Solicitor to review any share agreement before proceeding.
 
MandaC,
Thanks for information. The company was already a multi member company and only changed to a single member six months before the formal offer of the shares was given to me. I was really wondering why my boss would make a change to a single member company when he had already discussed the issue of shares previous to the change. I will get a solicitor to look it over.
Thank you
 
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