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Shareholders in Ltd company

Shareholders in Ltd company

Postby inshallah » Sat Jul 29, 2017 9:14 pm

Does anyone know if an Unincorporated Association can be a shareholder in a UK Limited company ?. What would the status of the
company be if the sole shareholder was one ?.
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Re: Shareholders in Ltd company

Postby atticus » Sun Jul 30, 2017 7:46 am

Q1. I cannot see why not.

Q2. It would still be a limited company. Do not confuse the company and its shareholder(s).
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Re: Shareholders in Ltd company

Postby dls » Sun Jul 30, 2017 8:13 am

The unincorporated association does not itself hold the shares. Such an association holds its assets generally in the name of its trustees.
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Re: Shareholders in Ltd company

Postby Hairyloon » Sun Jul 30, 2017 12:28 pm

dls wrote:Such an association holds its assets generally in the name of its trustees.

Name or names?
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Re: Shareholders in Ltd company

Postby atticus » Sun Jul 30, 2017 1:30 pm

Interesting question. The previous poster will be well placed to explain the legal impact of the distinction.
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Re: Shareholders in Ltd company

Postby inshallah » Sun Jul 30, 2017 7:45 pm

dls wrote:The unincorporated association does not itself hold the shares. Such an association holds its assets generally in the name of its trustees.


Oh well in this case it is held in the name " The Unincorporated Association" and is also listed as the "Person"with significant control . Can that be legit ?
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Re: Shareholders in Ltd company

Postby theycantdothat » Sun Jul 30, 2017 8:36 pm

inshallah wrote:
dls wrote:The unincorporated association does not itself hold the shares. Such an association holds its assets generally in the name of its trustees.


Oh well in this case it is held in the name " The Unincorporated Association" and is also listed as the "Person"with significant control . Can that be legit ?


Probably not. An unincorporated association has no separate identity from its members. The members are the association and the association is its members.
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Re: Shareholders in Ltd company

Postby inshallah » Sun Jul 30, 2017 10:32 pm

theycantdothat wrote:
inshallah wrote:
dls wrote:The unincorporated association does not itself hold the shares. Such an association holds its assets generally in the name of its trustees.


Oh well in this case it is held in the name " The Unincorporated Association" and is also listed as the "Person"with significant control . Can that be legit ?


Probably not. An unincorporated association has no separate identity from its members. The members are the association and the association is its members.


Hmm, so I wonder why would Company's House have allowed this, I guess just not spotting it many years ago when it was formed and not picked it up even now ?.
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Re: Shareholders in Ltd company

Postby theycantdothat » Mon Jul 31, 2017 7:10 am

I am not sure there is any obligation on Companies House to establish whether a purported shareholder exists as a legal entity.
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Re: Shareholders in Ltd company

Postby dls » Mon Jul 31, 2017 10:47 am

It is the compamy's own secretary who compiles and is responsible for the list of shareholders. Companies House merely receives a copy.
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