A and B ordinary shares

Discussion in 'Growing and Managing a Business' started by graeme.clark, Jan 28, 2015.

  1. graeme.clark

    uix_expand uix_collapse
    New Member

    Jan 28, 2015
    Likes Received:

    I would be grateful if some savvy individual could shed some light on how to be best structure a company (share wise) following the the constraints below.

    1, Party A would like to hold the majority share(voting rights) of the company at 51% whilst Party B would hold 49%.

    2, Financially the shares would have to be set up so that any profits in the company are split 30% for Party A and 70% for Party B.

    3, There would be a directors loan paid into the company at inauguration for £65,000.00 (from Party A). Any profits that the new company makes at first would be used to pay back the directors loan. Any subsequent profits are then split 70/30 (stated above).

    4, Party B would be technically employed by this new company and be paid a wage (£15,000.00) from the £65,000.00. This base wage would increase based on performance (performance being based on the amount of revenue that Party B brings into the new company).

    My thoughts were to apply two different shares to the company. Share A is 51% voting rights and 30% dividends and share B would be 49% voting rights and 70% dividends.

    is it possible to structure a company this way?

    Thanks for your time.

    Kind Regards,


Share This Page