Limited Company Assets

[SSKiR]

Hello,


Student here who is struggling to understand an aspect of company law relating to company assets. Obviously since a limited company is its own separate legal entity, it is the legal owner of all its assets, not the shareholder. My question however is, other than through a dividend, salary, or directors loan, can a majority shareholder (75% share) by special resolution vote to transfer company assets to themselves personally? (e.g. vote to transfer expensive machinery to them as a person, or alternatively a rather cheap computer?)


In this theoretical situation, the company is using the model articles with no additional shareholder agreement. If more clarification is required, please do let me know.

Thanks!

 

[Jaysen]

Hello,


Student here who is struggling to understand an aspect of company law relating to company assets. Obviously since a limited company is its own separate legal entity, it is the legal owner of all its assets, not the shareholder. My question however is, other than through a dividend, salary, or directors loan, can a majority shareholder (75% share) by special resolution vote to transfer company assets to themselves personally? (e.g. vote to transfer expensive machinery to them as a person, or alternatively a rather cheap computer?)


In this theoretical situation, the company is using the model articles with no additional shareholder agreement. If more clarification is required, please do let me know.

Thanks!

Nope, I'm pretty sure they can't do that. As you said, it's the company's money, and the primary legal ways of taking out the business are the points you mentioned above (plus investing in a pension or reimbursing expenses).