Andrew Marr (Forbes Dawson) answers a query on structuring a deal to take account of an ongoing legal dispute after the two shareholders have fallen out.
Question
A company carries on a consultancy business and has also acquired various investment properties. It is also involved in a legal dispute in relation to a £1m debt owed by a major client of the consultancy business. The two 50% shareholders have fallen out and wish to go their separate ways. Mr X wants to take over ownership of the investment properties; and Mr Y wants full control of the consultancy business. However they each want to share in any upside of the legal claim. Company net assets are £3m (including property of £1m and net current assets of £2m). The accounts value the legal claim at nil and the parties have agreed that goodwill...
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Andrew Marr (Forbes Dawson) answers a query on structuring a deal to take account of an ongoing legal dispute after the two shareholders have fallen out.
Question
A company carries on a consultancy business and has also acquired various investment properties. It is also involved in a legal dispute in relation to a £1m debt owed by a major client of the consultancy business. The two 50% shareholders have fallen out and wish to go their separate ways. Mr X wants to take over ownership of the investment properties; and Mr Y wants full control of the consultancy business. However they each want to share in any upside of the legal claim. Company net assets are £3m (including property of £1m and net current assets of £2m). The accounts value the legal claim at nil and the parties have agreed that goodwill...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
