Managing liabilities

My client (over 65 years of age) is a director of a limited company which has owned and run a very successful retail shop for many years. His wife also a director helped in the business but died in late 2007.

The business is currently valued at £700 000 the shareholdings being 57% for my client and 43% for his wife’s estate which was all left to my client.

Two managers were employed (but not appointed directors): A from February 2007 and B from August 2007. Since his wife’s final illness my client has spent reduced time in the business and now attends the shop for only two or three days each month.

It is proposed to transfer the wife’s shares equally to the two managers by way of a deed of variation; my client will also transfer some of his shareholding to bring the...