Selling a company and/or changing shareholder to someone else

Hi All,

Just wanted to know of thoughts regarding this.

I have a company that has no assets or liability. I am the sole director and the shareholder is my family trust. I have entered into a contract to purchase a property that is unregistered. I have paid the deposit, but not stamp duty as yet on the property.

Is it possible to sell the company for say $0 and a new shareholder take over the company before settlement (they will pay stamp duty)? They want to complete the purchase of this land as they want it. I have signed a director's guarantee under the contract, but the new purchaser of my company is willing to sign a new director's guarantee.

Any possible issues?

Thanks everyone
Alvaro.

 

Yes it is possible

Heaps of issues though

 

Thanks for the reply Terry.
What would be some of the issues? I don't think stamp duty would be applicable as the company has no assets and is not really worth anything?

 

Double stamp duty
Guarantee
Terms of cos
Cgconsideration
Contract for share sale
Etc

 

The company has a CGT right to acquire a property for $X. Thats an asset. Whether it is dutiable depends on other matters. Its one for a solicitor