Entrepreneur Extension-One Director Leaving-

[skyer]

Hello

We are 2 directors on £200k, funds were in joint personal account then transferred to joint business account. Have done investment in both director loan and share capital form, meet other requirements for extension.

Company is on both of our names as 50% each.

Now other director is planning to leave, does not want to go for extension instead wants to try something else, will this have any impact on my application for extension?

What I need to do if I am applying on my own?

Thank you.

[zimba]

I am not sure why entrepreneurial teams believe that their application for extension is somehow depends on their team member. Your application is a separate one and as long as you have the evidence required you will be given extension irrespective of your partner. Being in a team means that you both can share the same evidence.

[skyer]

Hello Zimba,

Thanks a lot.

Do the applicant needs to buy 100% shares from other partner even though they are already meet all requirements?

Home Office extension form requires details of other partner so this causes concern that they may say you were joint and only you can not claim all points for extension?

[zimba]

Hello Zimba,

Thanks a lot.

Do the applicant needs to buy 100% shares from other partner even though they are already meet all requirements?

Home Office extension form requires details of other partner so this causes concern that they may say you were joint and only you can not claim all points for extension?

Point scoring is individual. However if you want to apply alone you have to meet all the requirements alone. You need to prove that you invested the required money under your name and have all the points to be given an extension.

[skyer]

Thank you Zimba.

So I understand from your message, if other partner does not apply for extension then it is fine, it won't affect my application. We both meet all requirements but money have been invested from joint account which will not have any effect on my application if I apply without other partner.

[zimba]

Thank you Zimba.

So I understand from your message, if other partner does not apply for extension then it is fine, it won't affect my application. We both meet all requirements but money have been invested from joint account which will not have any effect on my application if I apply without other partner.

According to the rules, you need to let HO know who is your business partner or other director. I suggest you to remove him as a director and buy his shares off to become a sole partner.

[skyer]

Thank you Zimba.

So I understand from your message, if other partner does not apply for extension then it is fine, it won't affect my application. We both meet all requirements but money have been invested from joint account which will not have any effect on my application if I apply without other partner.

According to the rules, you need to let HO know who is your business partner or other director. I suggest you to remove him as a director and buy his shares off to become a sole partner.

Are you able to provide any direction as how to do this, do I need to call company house, do I need any letter from leaving director? Any thing you can advise and then I manage the process.

[zimba]

Are you able to provide any direction as how to do this, do I need to call company house, do I need any letter from leaving director? Any thing you can advise and then I manage the process.

Yes. All changes to your company needs to be reported accordingly to Companies House to take effect legally.
First you need to hold a company meeting with your partner, tell him that you want to acquire his shares in the company so he can leave the business. You both then prepare a company resolution with all the things you agreed upon which both of you must sign. This agreement will give you legal power to make changes to the company structure. You can then go ahead and implement the changes by reporting them to companies house.

This guide tell you exactly how to report changes to the Companies House: https://www.gov.uk/government/uploads/s ... 2_v3_4.pdf

[skyer]

Are you able to provide any direction as how to do this, do I need to call company house, do I need any letter from leaving director? Any thing you can advise and then I manage the process.

Yes. All changes to your company needs to be reported accordingly to Companies House to take effect legally.
First you need to hold a company meeting with your partner, tell him that you want to acquire his shares in the company so he can leave the business. You both then prepare a company resolution with all the things you agreed upon which both of you must sign. This agreement will give you legal power to make changes to the company structure. You can then go ahead and implement the changes by reporting them to companies house.

This guide tell you exactly how to report changes to the Companies House: https://www.gov.uk/government/uploads/s ... 2_v3_4.pdf

Thanks a lot Zimba.