Hello,
This is the situation for which I would appreciate any directions:
- I am the sole director of a Pty Ltd company (A).
- My family trust, where I am the trustee, owns 100% of its shares.
- I have been the single employee of A for the last few years.
- Unfortunately, business has gone dry this year and I have found a job at another company.
- Therefore, I would like to shutdown A.
- There is some cash in the bank account of A that I was expecting to distribute to the family trust as dividends prior to shutdown.
- A also owns some shares in another Pty Ltd company (B).
- According to a recent valuation of B the shares that A owns have increased in value.
What is the best way to I transfer the shares that A owns of B into my family trust prior to shutting down A? My understanding is:
- As the value of these shares has increased, the family trust would have to pay to A for these shares at current valuation.
- I might not have enough money to buy these shares at their current valuation.
- The money for these shares that A receives, would eventually go back to the family trust as dividends, involving tax.
Is this the correct interpretation and sequence of actions? Is there another approach in order to improve the outcome?
Thanks a lot for any ideas.
This is the situation for which I would appreciate any directions:
- I am the sole director of a Pty Ltd company (A).
- My family trust, where I am the trustee, owns 100% of its shares.
- I have been the single employee of A for the last few years.
- Unfortunately, business has gone dry this year and I have found a job at another company.
- Therefore, I would like to shutdown A.
- There is some cash in the bank account of A that I was expecting to distribute to the family trust as dividends prior to shutdown.
- A also owns some shares in another Pty Ltd company (B).
- According to a recent valuation of B the shares that A owns have increased in value.
What is the best way to I transfer the shares that A owns of B into my family trust prior to shutting down A? My understanding is:
- As the value of these shares has increased, the family trust would have to pay to A for these shares at current valuation.
- I might not have enough money to buy these shares at their current valuation.
- The money for these shares that A receives, would eventually go back to the family trust as dividends, involving tax.
Is this the correct interpretation and sequence of actions? Is there another approach in order to improve the outcome?
Thanks a lot for any ideas.
