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We've had a few calls this week about our old composite company and single person company systems. The calls weren't about joining these companies but about the shares that were issued in the process of setting contractors up in them.

For those of you unfamiliar with composites and single person companies; these structures were what the Managed Service Company Legislation introduced in the 2007 budget was designed to stop. They relied on paying people partially as PAYE and partially as a dividend on a share holding. This is what made issuing a share necessary as part of the set up process.

The share was a legitimate share in the limited company they were part of, and carried the voting rights associated with that, but had next to no value because any company profits were paid out as dividends each week. It's important to note that this wasn't a share in Gabem Management itself.

As you may have guessed from the direction I've taken, the calls we had were about selling the shares from their composite or single person companies, and with the economic climate and job situation like they are who can blame them. The companies were dissolved last year the shares are no longer valid, even if the companies were active you would have to find someone willing to buy them. Unfortunately like everything you want to sell it's only worth what someone is willing to pay for it.

I can assure you, if I hear of a way for you to make more money you'll hear it here first, and if I figure out a way to make a lot of money fast I will make it a priority to let you all know (from my private beach in the Maldives).

Hugo
22/07/2009