julesbrad started this topic @ 17:09 on 10/03/2007
Is it possible for shareholders in private limited companies to sell their shares to anyone willing to pay for them, if the shares have already been offered to existing shareholders who have declied to buy them ?
The reason I am asking is I am looking into the possibility of setting up a web site where people interested in buying and selling shares in private limited companies would be able to come together to make the trades. Would it be legal to set up such a web site ? or are there reasons why this could not be done ?
Thank you very much for your help
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RE: Buying / Selling shares in Private Limited Companies
James Smith | 12/03/2007 09:26 AM
Anyone can sell their shares to anyone else- the shares don’t have to be offered to existing shareholders unless the company articles say they do.
However I would suggest you misunderstand quite fundamentally how small business operate in terms of shareholdings. I don’t understand why you think OMB’s would start flogging off shares, and moreover why they would be actually worth anything if they did.
Regards,
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James Smith
Chartered Accountant
www.jamesesmith.co.uk
01235 536 773
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Your indispensable guide to Small Business Bookkeeping, Self-Assessment & VAT
RE: RE: Buying / Selling shares in Private Limited Companies
julesbrad | 12/03/2007 05:11 PM
Thanks for your response - it was just an idea - there is the main market for shares in PLCs, then for smaller businesses there is the AIM and my idea was for something which Private Limited Companies could take part in without them actually going as far as to offer shares to the public, which is not allowed, but more like an 'introduction agency' for shareholders of small businesses who may want to sell and for investors looking for alternative investments.
The lack of response I have received on this board and another one though makes me think there probably is not enough interest for a website or business based on this idea though.
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