I have a company with 100 issued shares and 2 shareholders - A has 75 shares and B 25 shares. They want to bring in a new shareholder so that each has an equal 33.333% share. Can I issue 8 more shares so that A has 81 shares and B 27 shares for no consideration? A will still have 75% and B 25% and the value of their shares and voting rights will not be affected. Then A can sell 36 shares to C and 9 shares to B. Then each has 36 share = 33.333%.
Is this legal in terms of the Companies Act?
Are there any tax implications (other than the cgt on the sale of A's shares)?