Sibling rivalry

My clients are a brother and sister who trade as a marketing business through a limited company. Ms A has 51% of the shares while Mr B has 49%.

Basically the company is reliant on the joint efforts of the two director/shareholders who each have their own specialist activities within the business; however they have decided to part company.

Ms A is not really in a position to personally buy Mr B’s shares but there are undistributed profits within the company and she was wondering whether this might be a case for a company purchase of own shares. In such a case presumably the company and shares will need to be valued although Mr B will be taking his own clients with him so this will have to be taken into account.

An alternative idea was that...