Some accountants voice concerns over multiple share classes and in this episode, Shaz looks at the different types of shares and how they can be used within the structure of a company.

Previously some types of shares have been exploited but as Shaz explains this is unlikely to happen with Alphabet shares as it’s a commercial arrangement that benefits both parties

 

KEY TAKEAWAYS

• In a limited company, you have ordinary shares,
• With different classes of shares, you can restrict and limit the rights people have with those shares
• You can limit voting rights and rights to a dividend
• EBT’s were abused as tax avoidance schemes and HMRC pursued people who had set up these schemes
• With mixed partnership rules partners were transferring their share into a limited company
• Alphabet shares are unlikely to go the same way. It’s a standard arrangement to give dividends but for those people to not have voting rights
• Alphabet shares are taking advantage of arrangements that benefit both parties
• It’s a commercial arrangement that works for both parties  

 

BEST MOMENTS

‘It can give you control of who gets what and when they get it’

‘Nobody can guarantee what’s going to happen but it’s unlikely’

 

VALUABLE RESOURCES

[email protected]

 

ABOUT THE HOST

Shaz Nawaz is a serial entrepreneur; he owns five thriving businesses in diverse sectors.

Shaz is committed to helping business owners build successful businesses. Having conducted over 3,000 business growth consultation he has helped his clients generate millions in additional profits. His purpose is to inspire business owners to build businesses that are hugely profitable and sustainable.

He is a huge advocate of having multiple streams of income. He has written a number of business books and regularly contributes articles to mainstream media outlets.

You can find Shaz on:

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