Gift of shares

My client Mr Lucky B has been working for a private company for some five years as managing director. The shares are split amongst various members of the original owning family and there are no unallocated shares. The company has been making small losses for the last few years though this position has improved in the current financial year but it is believed that the shares are of little value as the company has a 'black hole' in the pension scheme.

The chairman who is a member of the original owning family has decided that as none of his family want to follow him into the business he would like to give a small parcel of shares to Mr B. This would be as a personal gift because the two of them enjoy an excellent relationship at...