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  • #995097
    evmin
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    Good day.

    Is there a simple to read and understand guide to issuing shares with company registration? What types to consider, implications, gotchas, etc.

    Also would be interested in finding a reasonably priced advice with company registration.

    Cheers.
    Evg

    #1199996
    Taxopia
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    evmin, post: 236792, member: 82874 wrote:
    Good day.

    Is there a simple to read and understand guide to issuing shares with company registration? What types to consider, implications, gotchas, etc.

    Also would be interested in finding a reasonably priced advice with company registration.

    Cheers.
    Evg

    Our fees start from about $350 Exc GST plus company setup disbursements (around $600). In that we give some advice on appropriate structure.

    Happy to assist if need be. Unless your going into to business setting up companies I can’t the value in learning everything yourself just to save $350. Many people do. They make mistakes. It costs them more.

    Good luck either way
    Alex

    #1199997
    Anonymous
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    When you go beyond two equal shareholders in a company things can get very complicated and you should get an accountant for advice and setting up the company. They can explain things like unissued shares, proper treatment of any loans from shareholders and directors, CGT on assets put into the company and many other things. With multiple shareholders you can run into issues with management of the company (Directors), especially if not replacing some of the rules in a standard company constitution.

    A simple example is three equal shareholders, under the standard constitution it only requires greater than 50% of the votes to appoint or remove a director. Two of the three equal shareholders can get together and control who are directors, since they have 66% of the votes. I think they can even appoint a Managing Director which gives them pretty much total control of the company’s operation, giving the ability for disposing of assets, loans and other actions that can impact the sidelined shareholder.

    You will probably want both a custom company constitution and shareholder’s agreement before any shares are issued and each shareholder should get independent legal advice before signing.

    #1199998
    Rohan@TD
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    [USER=82874]@evmin[/USER], I highly recommend taking the advice of both [USER=79633]@Smb[/USER] and [USER=68601]@Taxopia[/USER] above.

    If it’s a startup, explore vesting with a equity cliff to protect the founders who stay around and put the effort in.

    #1199999
    Paul – FS Concierge
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    evmin, post: 236792, member: 82874 wrote:
    Good day.

    Is there a simple to read and understand guide to issuing shares with company registration? What types to consider, implications, gotchas, etc.

    Also would be interested in finding a reasonably priced advice with company registration.

    Cheers.
    Evg
    Hi And Welcome to the Forums. It is great to have you!

    #1200000
    PRO
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    If it is structuring advice (as opposed to tax advice) and the pros and cons of different share holdings and variations to constitutions then you need to see a lawyer.

    A shareholders agreement is also very cheap insurance for if things go bad.

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