18 March, 2020
With more alarming updates coming from the government daily, in these times of uncertainty, many businesses may be looking to their accountants for advice on how to best protect their assets.
One thing that businesses can do is to look to restructure; setting up a holding company, undertaking a share for share exchange so that ownership of the shares in the trading company are transferred to the new holding company in exchange for existing shareholders being issued with shares in the new holding company. Once the structure is in place any valuable assets, for example any property or intellectual property currently held within the trading company, can then be hived up into the new holding company in order to create a ringfencing of such assets from any trading losses.
Of course, if such assets are subject to current security arrangements, such as a debenture or legal charge then permission would need to be sought from the charge holder before such transfers can take place. Similarly, any transfers are subject to insolvency law and the objections of any creditors of the company.
At Forbes, our corporate, commercial and property specialists collectively have a wealth of experience undertaking this type of work and in order to satisfy clients' needs to keep costs down at this troubled time we are happy to be able to offer a range of fixed fees for such assistance, please contact us for more information on the details below.