ending business contract advice
Discussion
my girlfriend owns a hairdressing salon and has a partner, the business is a limited company.
she wants to end the contract due to various reasons, the main problem being her partner has no interest in the companies success, and they do not get on together anymore.
what does she need to do to terminate the contract? can she do this? would she be able to go self employed and remain at the same premises which is rented?
All replies would be appreciated!
she wants to end the contract due to various reasons, the main problem being her partner has no interest in the companies success, and they do not get on together anymore.
what does she need to do to terminate the contract? can she do this? would she be able to go self employed and remain at the same premises which is rented?
All replies would be appreciated!
Is your girlfriend a director, and is her business partner a director? Who is the Company Secretary? What about shares - I take it your girlfriend owns >50% of the shares? Does her partner own any? Read the shareholders agreement and if there was never a shareholders agreement then check the Articles of Association to see what restrictions on shareholders might be in place.
Maybe your girlfriend could buy her partner out really cheaply if the partner has no interest in the business?
Failing that I think your girlfriend could file a form at companies registry to resign as a director, and hand her notice in as an employee, and keep any shares issued to her. If she goes this route, be aware that she may loose rights/control when she gives up directorship. Also for limited companies law stipulates that there has to be a minimum of one director and a secretary. A person can hold both jobs provided there is another director. Therefore she might need to have someone else lined up to take a directorship within the company.
Maybe your girlfriend could buy her partner out really cheaply if the partner has no interest in the business?
Failing that I think your girlfriend could file a form at companies registry to resign as a director, and hand her notice in as an employee, and keep any shares issued to her. If she goes this route, be aware that she may loose rights/control when she gives up directorship. Also for limited companies law stipulates that there has to be a minimum of one director and a secretary. A person can hold both jobs provided there is another director. Therefore she might need to have someone else lined up to take a directorship within the company.
Edited by TurricanII on Saturday 19th January 16:07
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