Issued capital of company was two shares of £1 each; one of the two shareholders who was also a director became ill and had very little to do with company, company paid her £20 a week.
Payment was a disguised return of capital.
This because the remuneration was out of all proportion to her work done for the company
This despite fact she only held one share of £1!
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Company law | Legal Capital Notes (20 pages) |
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