The legal route

[Santa]

Any money loaned to the club would have to be entered on to the books as Share Capital, how would it go back out?

[fairportnick]

Any money loaned to the club would have to be entered on to the books as Share Capital, how would it go back out?

 

A loan and share capital are two entirely different things.

[Santa]

The point I'm making is, anybody can show a bank entry for £350,000 but it has to correspond to an entry in the books.

 

If another SH01 gets filed which changes the status of these shares to 'paid', there should be an accounting entry to support that.

 

If the money gets taken back out again the money would have to exit the books via another entry.

 

If the money just goes straight into the bank account and straight back out again, there would be nothing there at year end to support the view that these shares were paid for.

 

By the way you can probably tell I'm not an accountant. I work around people who are but all the stuff about CIMA, accruals, P&L, Rep letters, SOX / Section 404 makes me want to jump out of the window.

[Loggerheads Sage]

Miller said judge us in 3 months - already done so I'm afraid. As someone posted recently "I paid money in to my bank account last week, this week my wife took it back out" Don't believe Deakin has £100k to invest in us (and why would he?) Miller, trust him as far as I could chuck him. Wheather Hank is lieing as well I don't know (possibly), doesn't matter now - no deal, no cash, no prospects Im afraid. Get out now, this will get ever messier - roll on Saturday! ===

[MagicFlask]

The point I'm making is, anybody can show a bank entry for £350,000 but it has to correspond to an entry in the books.

 

If another SH01 gets filed which changes the status of these shares to 'paid', there should be an accounting entry to support that.

 

If the money gets taken back out again the money would have to exit the books via another entry.

 

If the money just goes straight into the bank account and straight back out again, there would be nothing there at year end to support the view that these shares were paid for.

 

By the way you can probably tell I'm not an accountant. I work around people who are but all the stuff about CIMA, accruals, P&L, Rep letters, SOX / Section 404 makes me want to jump out of the window.

 

I trained to be one for three years or more.....then I did jump out of the window....for the reasons stated........

 

The company's accounts - the balance sheet - would need to show the share capital as a value "issued" and a value "paid" (is that right, Nick?) and so any change in either value would need to be stated if the accounts were to be true and fair........it would also need to record debtors and creditors - which would of necessity include any monies owed to the company for shares, and any money owed by the company (such as loans)

Directors loans would have to be recorded too, as in loans by directors , not loans to them usually......

 

I'm not sure how the income from sale of shares would be reflected in the profit and loss account - it's been a while since I did any accounting......I was wondering if it actually would.......I suspect not, since the share capital is a balance sheet item, so the balancing figure should be cash in the bank account I think.......please Sir Nick can you tell me if that's right????

[fairportnick]

I trained to be one for three years or more.....then I did jump out of the window....for the reasons stated........

 

The company's accounts - the balance sheet - would need to show the share capital as a value "issued" and a value "paid" (is that right, Nick?) and so any change in either value would need to be stated if the accounts were to be true and fair........it would also need to record debtors and creditors - which would of necessity include any monies owed to the company for shares, and any money owed by the company (such as loans)

Directors loans would have to be recorded too, as in loans by directors , not loans to them usually......

 

I'm not sure how the income from sale of shares would be reflected in the profit and loss account - it's been a while since I did any accounting......I was wondering if it actually would.......I suspect not, since the share capital is a balance sheet item, so the balancing figure should be cash in the bank account I think.......please Sir Nick can you tell me if that's right????

 

A lot of this is academic as it will only be reflected in accounts we will not see for another 12 months.

Sale of shares will not pass through the P & L. Although it will in the cash flow statement. The normal Balance Sheet entries are Debit bank account & credit issued share capital.

Loans from directors are quite normal in smaller companies. Loans to Directors have a number of implications : There would be a taxable benefit in kind on the director on the notional interest on which he would pay tax and the company would pay NICs at the employers rate. In additional any loans not repaid within 9 months from the end of the accounting period would be subject to corporation tax at 25%.

[MagicFlask]

A lot of this is academic as it will only be reflected in accounts we will not see for another 12 months.

Sale of shares will not pass through the P & L. Although it will in the cash flow statement. The normal Balance Sheet entries are Debit bank account & credit issued share capital.

Loans from directors are quite normal in smaller companies. Loans to Directors have a number of implications : There would be a taxable benefit in kind on the director on the notional interest on which he would pay tax and the company would pay NICs at the employers rate. In additional any loans not repaid within 9 months from the end of the accounting period would be subject to corporation tax at 25%.

 

Yes, the 12 month wait to find out isn't good......by the time those accounts come out we will either be totally broke and in new hands, or struggling along being ripped off left right and centre....

 

I guess the sale of catering and pouring rights won't be reflected in this year's accounts (as in the AGM) either......or the sale of advertising that we have been told so much about.......

[blackdog]

I think for what its worth that the legal route will take too long,they will have every angle covered,the only way is too Starve Them Out ===

[Valiant Haze]

I think for what its worth that the legal route will take too long,they will have every angle covered,the only way is too Starve Them Out ===

 

Knock the stuffing out of 'em..

[geosname]

The legal route is a long and very expensive one. If its possible and practical it should be followed and even if its not it should still be utilised, letters questioning the legalities of the shares, the vote for miller, the vote for deakin, the board decision re nil paid shares, the contract with AGS and BS..... in fact everything and anything that slows them down, makes them think or shakes their tree.

[Aussie Rules]

The legal route is a long and very expensive one. If its possible and practical it should be followed and even if its not it should still be utilised, letters questioning the legalities of the shares, the vote for miller, the vote for deakin, the board decision re nil paid shares, the contract with AGS and BS..... in fact everything and anything that slows them down, makes them think or shakes their tree.

 

Supported by any known evidence of similar behaviour in other 'Football Clubs' ===