Director leaving company

[prostang]

Hi we are a small company with just 3 directors and no staff. we have no debts and cash in hand one of the directors is leaving to go work for the company we do work for therefore loosing us 80% of our work.
Where do I legally stand refusing to give him his share of assets of the company considering we will probably loose money till we can replace this work.

[prostang]

Thanks for the reply we all own 33 £1 shares each , we don't have any agreements just 3 people that set a company up , don't want to close the company down as we have a good reputation and have been trading for 5 years , just not sure what to do really just tell him he can stay as shareholder and he will get a dividend if we make any money in future or pay him off

[prostang]

bigandclever said:

With my misery hat on, is he leaving because you and the other director only do 20% of the work? Doesn't help answer your question, just nosey!

Nope we all do equal amount of work

[prostang]

HenryJM said:

prostang said:

Thanks for the reply we all own 33 £1 shares each , we don't have any agreements just 3 people that set a company up , don't want to close the company down as we have a good reputation and have been trading for 5 years , just not sure what to do really just tell him he can stay as shareholder and he will get a dividend if we make any money in future or pay him off

It's your choice decided in many ways by how much he wants. There is no way of valuing that, you agree a price and it happens, don't agree and he remains a shareholder,

As a 33% holder he has limited rights, your own remuneration can be by salary and not dividend although you then need to pay NI. He could remain a shareholder for years and make nothing from it but it is best rid if you can get him to agree a reasonable price.

Thanks for the reply probably try to negotiate with him but in his eyes he wants a 1/3 of everything

[prostang]

Hi folks
Thanks for all the replies , will probably sit down with him and try and sort if out as we have been freinds for 30 years so that must count for something.