Obviously the best place for business advice (C type shares)
Discussion
Whilst I appreciate this is mostly a car forum thought I might pose a question and see if anyone has some advice.
Wife worked as a semior manager in the care industry.
After a number of years business owner offered the following proposal:
Wife to become director
Wife to purchase nominal number (£10) of C type shares.
Wife paid minium salary and remainder of remmitance to be made up from share dividend.
Wife agreed.
Recently wife discovered
She had been resigned as director (Without her knowledge or permission)
Business was in financial problems
Business owner was looking for new partner to get cash injection.
Wife then had discussion with business owner and decided to resign from company with 28 days notice.
Business owner placed wife on Gardening leave with immediate effect.
Business owner requested buy back of shares.
Wife has just received pay statement for September, it contains salary only with no share remittance. She was also only paid to the last day of month and notice period extended into first two weeks of October. We have now waited a reasonable time and no salary has been paid for Octobers portion of notice period.
Here come the questions.
With C type shares can they still be held if you have no connection to the company.
My thought is that the dividend paid should cointinue whilst holding the shares (Correct or Not)
Can you be resigned as a director with no agreement i.e. my wife was unaware that she had resigned we discovered this from a business reporting website giving details of company tax returns.
Can C type shares be sold to a third party, if sold will they attract a dividend.
I have been trawling through tinterweb and have found many contradictory answers so thought petrolheads the best place for legal/business advice obviously.
Wife worked as a semior manager in the care industry.
After a number of years business owner offered the following proposal:
Wife to become director
Wife to purchase nominal number (£10) of C type shares.
Wife paid minium salary and remainder of remmitance to be made up from share dividend.
Wife agreed.
Recently wife discovered
She had been resigned as director (Without her knowledge or permission)
Business was in financial problems
Business owner was looking for new partner to get cash injection.
Wife then had discussion with business owner and decided to resign from company with 28 days notice.
Business owner placed wife on Gardening leave with immediate effect.
Business owner requested buy back of shares.
Wife has just received pay statement for September, it contains salary only with no share remittance. She was also only paid to the last day of month and notice period extended into first two weeks of October. We have now waited a reasonable time and no salary has been paid for Octobers portion of notice period.
Here come the questions.
With C type shares can they still be held if you have no connection to the company.
My thought is that the dividend paid should cointinue whilst holding the shares (Correct or Not)
Can you be resigned as a director with no agreement i.e. my wife was unaware that she had resigned we discovered this from a business reporting website giving details of company tax returns.
Can C type shares be sold to a third party, if sold will they attract a dividend.
I have been trawling through tinterweb and have found many contradictory answers so thought petrolheads the best place for legal/business advice obviously.
So so so many questions
Was there a shareholders agreement signed?
What were the terms of the C shares?
How many other shares are there?
What rights do the A & B shares have (assuming there are A & B shares)?
Did your wife buy 10 x £1 shares or 1000 x 1p shares?
How many C shares are there in issue? i.e. lets say there are 10 x £1 shares that your wife owns and there are no A & B shares issued and total issued C shares are 20 x £1 shares then your wife owns 50% of the company. But if there are 100 C shares in issue then your wife only owns 10% of the company and so on.
Are there any other shareholders?
How long has your wife held the shares and has there been a set of accounts produced with a year end that falls in the ownership period? If so what dividend was declared in them for C shares?
A shareholder and A Director are 2 entirely separate things. You can be a shareholder and not a Director and vice-versa.
Was there a shareholders agreement signed?
What were the terms of the C shares?
How many other shares are there?
What rights do the A & B shares have (assuming there are A & B shares)?
Did your wife buy 10 x £1 shares or 1000 x 1p shares?
How many C shares are there in issue? i.e. lets say there are 10 x £1 shares that your wife owns and there are no A & B shares issued and total issued C shares are 20 x £1 shares then your wife owns 50% of the company. But if there are 100 C shares in issue then your wife only owns 10% of the company and so on.
Are there any other shareholders?
How long has your wife held the shares and has there been a set of accounts produced with a year end that falls in the ownership period? If so what dividend was declared in them for C shares?
A shareholder and A Director are 2 entirely separate things. You can be a shareholder and not a Director and vice-versa.
So so so many questions
Was there a shareholders agreement signed? Yes
What were the terms of the C shares? Not known the statement states as per the Articles of association of the company which are not seen.
How many other shares are there? Not known believed to be 1 other manager assumption 10 C type, it is understood owner is sole shareholder in all other respects.
What rights do the A & B shares have (assuming there are A & B shares)? Not Known
Did your wife buy 10 x £1 shares or 1000 x 1p shares? 10X £1 shares
How many C shares are there in issue? i.e. lets say there are 10 x £1 shares that your wife owns and there are no A & B shares issued and total issued C shares are 20 x £1 shares then your wife owns 50% of the company. But if there are 100 C shares in issue then your wife only owns 10% of the company and so on. understanding is 20 C type shares and not known how many A and B type.
Are there any other shareholders? It is understood 1 other C type shareholder and the business owner holds the remainder.
How long has your wife held the shares and has there been a set of accounts produced with a year end that falls in the ownership period? If so what dividend was declared in them for C shares? Held since 2013 accounts have been produced, the dividend paid equates to £25,000 payable in 12 monthly stages.
A shareholder and A Director are 2 entirely separate things. You can be a shareholder and not a Director and vice-versa. Understood, however question was that wife was "resigned" without her knowledge or input.
I hope this puts some more meat on the bones.
Was there a shareholders agreement signed? Yes
What were the terms of the C shares? Not known the statement states as per the Articles of association of the company which are not seen.
How many other shares are there? Not known believed to be 1 other manager assumption 10 C type, it is understood owner is sole shareholder in all other respects.
What rights do the A & B shares have (assuming there are A & B shares)? Not Known
Did your wife buy 10 x £1 shares or 1000 x 1p shares? 10X £1 shares
How many C shares are there in issue? i.e. lets say there are 10 x £1 shares that your wife owns and there are no A & B shares issued and total issued C shares are 20 x £1 shares then your wife owns 50% of the company. But if there are 100 C shares in issue then your wife only owns 10% of the company and so on. understanding is 20 C type shares and not known how many A and B type.
Are there any other shareholders? It is understood 1 other C type shareholder and the business owner holds the remainder.
How long has your wife held the shares and has there been a set of accounts produced with a year end that falls in the ownership period? If so what dividend was declared in them for C shares? Held since 2013 accounts have been produced, the dividend paid equates to £25,000 payable in 12 monthly stages.
A shareholder and A Director are 2 entirely separate things. You can be a shareholder and not a Director and vice-versa. Understood, however question was that wife was "resigned" without her knowledge or input.
I hope this puts some more meat on the bones.
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