Forfeiture

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    #16
    Originally posted by ram View Post




    You cannot issue a £1000 share, with a share certificate to prove you have a share, unless you pay in full, the price of the share certificate.


    Yes, you most certainly can.

    The Companies Act has a pro forma balance sheet, which has an entry for called up share capital that is unpaid in the debtors part of the balance sheet.



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      #17
      Originally posted by sgclacy View Post
      Yes, you most certainly can.
      The Companies Act has a pro forma balance sheet, which has an entry for called up share capital that is unpaid in the debtors part of the balance sheet.
      So you issue a share for £ 1, but the leaseholder still owes £ 999.
      And what if leaseholder does not pay the £ 999.
      *OR the freeholder asks for the £ 999 to get them out of trouble to pay a large solicitors bill. *

      Dont expect the leaseholders to say, "certainly, i will give you £ 999 tomorrow " - + don't think that will happen.
      If they don't pay the real price of the share for above * - *, what is the freeholder going to do ? Take the share off them ? which you are allowed to do.
      So what do you end up with ? no shareholders probably. and an unpaid solicitors bill going to court
      And where do you stand ? nowhere, and the directors have to pay the solcitors bill.

      No. wont work. -- in leasehold flats.
      The leaseholders have bought a flat and don't wan t the agro of having to pay ( £ 999 ) to get the freeholder out a freeholder self inflicted problem. - most will tell the freeholder to "Go forth and multipy", as all the leaseholders lose is their share and be £ 999 richer by not paying.




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        #18
        I don't think the RMC or RTM should be issuing shares. Whilst this does have the advantage of raising cash, the cash raised is often low; and a real danger exists of on a lease sale the share in the RMC/RTM is forgot about and isn't transferred with it.

        Andrew Dod is correct. The problem of all RTM entities is that nominally, all expenditure should be matched by income. No 'reserves' should ever exist. If one lessee fails to pay the company has no money of its own with which to make good. So it ends up with someone either having to step in, or the company being liquidated. Both are not good.
        On my development (I'm long out of leasehold thank goodness) when I had the exact situation so described, I decided to step in. So you ended up with one leaseholder bailing out another (effectively). That is not a way to happy neighbours and a friendly situation.

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