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One Director Leaving Company

17larsson · 2020-04-29 11:07:42

Hi lads, What is the best way for a director to leave a company? There are two directors currently with 50% shares each. Does it need an official valuation or can the two directors agree what 50% of the company is worth and pay the outgoing director this in return for his 50% share or does it need to go through a proper…

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29-04-2020 12:07pm

#1

17larsson

Registered Users Posts: 466 ✭✭

Join Date: September 2012

Posts: 443

Hi lads,

What is the best way for a director to leave a company?
There are two directors currently with 50% shares each.
Does it need an official valuation or can the two directors agree what 50% of the company is worth and pay the outgoing director this in return for his 50% share or does it need to go through a proper procedure?

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#2 30-04-2020 12:33pm
Cianos

Registered Users Posts: 4,850 ✭✭✭

Join Date: December 2004

Posts: 4039

It's easy enough if you're both in agreement on the exit terms. You should speak to your accountant on the best way of doing it - you'll need to complete a stock transfer form and submit the paperwork. If the person leaving is getting a cash payment you can consider allowing the company to purchase the shares (rather than the individual) and they'll then default to the sole remaining director. The remaining director will need to pay a small tax on the acquisition of the shares in turn.

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