Financial Order - Declaration of Assets
Pillartopost1 · 21/11/2022 12:53
The ex is listed as a Director of her family business. When we had a meeting with the mediator, she stated she was a Non-executive Director but a holder of 100 shares valued at £3/share. As a Director, she holds between 25% and 50% of the shares of the company which had a turn over last year of £138k. I brought this up during the meeting (I have dated screenshots from Companies House).
Should she be declaring her percentage of share ownership as a Director or is this allocation of shares permitted (though ethically wrong)?
altmember · 25/11/2022 13:26
Director and share holder are two totally separate things - it's possible to be only one or the other, although naturally it's common for directors of small businesses to also be shareholders.
The £3/share thing will be the nominal value - all that means is how much she is liable for if the company goes belly up. The true value is whatever the company is actually worth multiplied by her percentage of share holding. It can be notoriously difficult to put a real value on a business, but would need to be done by an independent professional.
I'm pretty sure it would be wrong for her to declare the nominal value, but the true value depends on the nature of the business and any assets it holds. I mean, if she's just doing consultancy work and the ltd company is just a shell for that, then the company itself may be worth next to nothing.
Pillartopost1 · 25/11/2022 16:38
Thank you for your response.
I also consulted an accountant who looked into the value of the company based on the filing history. The accountant have strong indications that she is not declaring the full value of her shareholder position.
It feels wrong to be snooping on someone I said I wanted to spend my life with but I don't think it's right to withhold or distort the truth either.
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