Joint Venture
October 24th, 2008 . by DanDear Sirs,
I have a question concerning a joint venture between two UK limited companies and I would be grateful if you could provide some information on both the formation aspects, shareholding and the eventual dissolution of the business.
1. In a limited company – can companies own shares rather than individuals? We are thinking of having two people as act as directors but then two companies as shareholders.
2. If we set up a company we would aim to have very limited or zero dividends – but if there were any, would they just divide between the shareholders (or the Directors?)
3. How do you wind up a limited company – is it messier than dissolving a partnership or easier? What happens to the trading name if the company is folded?
4. Would a buy out of shares be available so we could allow a third Director to join and buy some of our shares so he could also be a shareholder at a later date?