Using a bucket company to buy shares?

Discussion in 'Accounting & Tax' started by Propagate, 7th Jun, 2019.

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  1. willair

    willair Well-Known Member Premium Member

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    They end up kicking the bucket..
     
    willair, 9th Jun, 2019
    #21
    Propagate and Terry_w like this.
  2. Propagate

    Propagate Well-Known Member

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    Hadn’t thought that far yet @Terry_w
     
    Propagate, 10th Jun, 2019
    #22
  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Think about
    - will the business be able to be operated without one of you
    - if the surviving spouse wants out of the business
    This is where the shareholder agreement will kick in to determine who will the shares be able to be sold to, and how they would be valued.

    Example
    The other partner dies. The business is down a man, so to continue the company has to employ a new person. The other's partner takes over their trust and the shareholder position. This is a person you don't know and they try to take control of the company complaining about how it is being run. They then suggest you buy them out but at double the price you want to pay. In the meantime company assets start to go missing.

    Perhaps they die with their partner so you are dealing with a complete stranger rather than their spouse.
     
    Terry_w, 10th Jun, 2019
    #23
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