ARTICLES BY MATHEW KEMP

There are a number of reasons you may want to create multiple share classes, otherwise knows as ‘A and B Shares’ in your limited company, including: Control They give you control over the quantity of dividend paid out to each class of company shareholders and when it will be paid Attainment To attain that one class of shareholder has better voting rights or no voting rights at all Rights To ensure some shareholders have a limited or no right to a return of capital on winding up the company; and/or to enhance the rights of one class of shareholders by awarding a fixed dividend or a return of capital ahead of other shareholders

Rather, many small businesses are service providers, often using the internet or mail order and never needing a space in which to meet clients Even those which do require some physical space – for example a counselling or tutoring business – can often be run from home

Even if the company is owned by two brothers, a mother and daughter, or close friends, every expert lawyer, businessperson and accountant will recommend that you have such a shareholders agreement set up Ideally, the agreement will be in place before you even start doing business together

British business is supporting an increasing number of small business owners, who hold a good proportion of many markets; the most noticeable being construction and internet services, but the realm of small business can include any sector However, while you may operate as an individual, it’s important for your business – both practically and legally – that you’re viewed as a company

No business starter likes giving up control to extra shareholders But the issuance of shares is a necessity of modern business, giving the person responsible for the actual running of the business the financing needed to make it into a success