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Pipes Ltd is an unquoted plumbers’ merchant which was incorporated in March 2000 with a single subscriber share held by S who started the business and acted as its first director. In 2001 the company sought additional capital funding. G an investor subscribed £500 000 for new shares which constituted a 20% stake in the company. G also joined the board of the company. In 2002 another director B was awarded shares. Under a shareholders’ agreement G and B are obliged to offer their shares for sale to S at the shares’ par value if they leave to go to a competitor. The company proposes to insert a new holding company (TopCo). Are there any exposures under ITEPA 2003 Part 7 and which shareholders are at risk?

 

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