50% shareholder not being paid .
Discussion
Hi
Please advice I own 50% share successful limited company. I started the company with my co founder in 2014 but I’m not a Director anymore I left the role but I decided to stay as shareholder and my dividends have no been paid now for several months my cofounder is still paying himself dividends and £2500 per month. I see all this information how much money it makes etc as my name is still on the business bank account but my cofounder cancelled my card access. He is simply refusing to respond to my emails. Our accountant is currently is telling me to sort it out with cofounder. I feel hopeless as it’s also HMRC self assessments coming up. My co founder is still company director. What’s can I do please? I’m in financial hardship.
Please advice I own 50% share successful limited company. I started the company with my co founder in 2014 but I’m not a Director anymore I left the role but I decided to stay as shareholder and my dividends have no been paid now for several months my cofounder is still paying himself dividends and £2500 per month. I see all this information how much money it makes etc as my name is still on the business bank account but my cofounder cancelled my card access. He is simply refusing to respond to my emails. Our accountant is currently is telling me to sort it out with cofounder. I feel hopeless as it’s also HMRC self assessments coming up. My co founder is still company director. What’s can I do please? I’m in financial hardship.
Avajones said:
Hi
Please advice I own 50% share successful limited company. I started the company with my co founder in 2014 but I m not a Director anymore I left the role but I decided to stay as shareholder and my dividends have no been paid now for several months my cofounder is still paying himself dividends and £2500 per month. I see all this information how much money it makes etc as my name is still on the business bank account but my cofounder cancelled my card access. He is simply refusing to respond to my emails. Our accountant is currently is telling me to sort it out with cofounder. I feel hopeless as it s also HMRC self assessments coming up. My co founder is still company director. What s can I do please? I m in financial hardship.
In what capacity are you on the company bank account? I presume as just a signatory or are you also a guarantor?Please advice I own 50% share successful limited company. I started the company with my co founder in 2014 but I m not a Director anymore I left the role but I decided to stay as shareholder and my dividends have no been paid now for several months my cofounder is still paying himself dividends and £2500 per month. I see all this information how much money it makes etc as my name is still on the business bank account but my cofounder cancelled my card access. He is simply refusing to respond to my emails. Our accountant is currently is telling me to sort it out with cofounder. I feel hopeless as it s also HMRC self assessments coming up. My co founder is still company director. What s can I do please? I m in financial hardship.
Are you sure he is making payments as a dividend as these should be paid to all shareholders after a directors meeting?
If he is not replying to emails, then you perhaps need to pay him an announced visit to discuss the position.
ExBoringVolvoDriver said:
Agree we need more information here although the OP says he is a 50% shareholder so not a minor one.
Minor does not necessarily mean ‘minor’. But we need detail. I feel strongly about this s
t, so should probably save comment until the morning when I’m not a couple of bottles in! FWIW said:
ExBoringVolvoDriver said:
Agree we need more information here although the OP says he is a 50% shareholder so not a minor one.
Minor does not necessarily mean minor . But we need detail. I feel strongly about this s
t, so should probably save comment until the morning when I m not a couple of bottles in! First question is related to the shares, are all the shares in the same class? If so, all shareholders should receive the same dividend per share.
Second question is what does it say on companies house regarding people, both as officers and as persons with significant control.
Thirdly, bank access. It would need an official letter from the company to remove you from the signatories, that would need signing by all the directors and shareholders including the OP.
In my view, if the shares are the same class the accountant is ducking their responsibilities. Similar to the bank it would require authority to remove the OP from access, which the OP would have had to sign.
Second question is what does it say on companies house regarding people, both as officers and as persons with significant control.
Thirdly, bank access. It would need an official letter from the company to remove you from the signatories, that would need signing by all the directors and shareholders including the OP.
In my view, if the shares are the same class the accountant is ducking their responsibilities. Similar to the bank it would require authority to remove the OP from access, which the OP would have had to sign.
FWIW said:
Struggling to read post without punctuation.
However, unfair prejudice against a minor shareholder is something that I (sadly) know too much about.
Tell us more.
Thanks for your reply , it feels very unfair. What would you like to know? I’m not a minor shareholder I have 50% and the cofounder has 50% plus his a Director. He claims I I'm a passive shareholder and he even cancelled my email account. The company makes £15000 sales per months. I haven’t received any dividends since February last year. However, unfair prejudice against a minor shareholder is something that I (sadly) know too much about.
Tell us more.
ExBoringVolvoDriver said:
Agree we need more information here although the OP says he is a 50% shareholder so not a minor one.
Thanks for your reply. I confirm I’m not a minor shareholder. I have 50% share same as him, Company bank account we are joint I had equal rights but the business partner said now that I’m not a Director anymore I shouldn’t have access anymore he even cancelled my company work email without my permission. ExBoringVolvoDriver said:
FWIW said:
Struggling to read post without punctuation.
However, unfair prejudice against a minor shareholder is something that I (sadly) know too much about.
Tell us more.
Agree we need more information here although the OP says he is a 50% shareholder so not a minor one.However, unfair prejudice against a minor shareholder is something that I (sadly) know too much about.
Tell us more.
If you re not a director or employee, then I don t think there s anything you can do about the email account. Not sure it s relevant anyway. Do you do any work for the company?
Revenue is irrelevant. Profit may be more important but the company director could just pay a bigger salary and ensure that there s no profit to distribute as dividends.
If he is paying dividends (how do you know this) then all shareholders should be paid equally.
Is there a shareholders agreement?
Does the company owe you any money?
I think with 50% from a legal perspective you re still classed as a minor shareholder for the purposes of an unfair prejudice claim. Happy to be corrected.
Revenue is irrelevant. Profit may be more important but the company director could just pay a bigger salary and ensure that there s no profit to distribute as dividends.
If he is paying dividends (how do you know this) then all shareholders should be paid equally.
Is there a shareholders agreement?
Does the company owe you any money?
I think with 50% from a legal perspective you re still classed as a minor shareholder for the purposes of an unfair prejudice claim. Happy to be corrected.
paddy1970 said:
This situation seems potentially serious enough that legal intervention may be necessary to protect your interests and your 50% stake in a successful business. Don't let this continue - you have rights that should be enforced.
I am really sad about this whole situation it has been several months now of no payments and I was hoping he would do the right thing but he just ignores emails and text messages and told me in person he won’t pay me nothing. I think I will need legal advice but I’m scared of the costs. What kind of solicitor do I need? PoorCarCollector said:
I also have bitter experience of exactly this issue
Sadly nothing can be done without taking legal action, which is expensive and still doesn't mean you'll actually get paid.....
Good luck! Its a very painful process....... grrrrr
Sorry to hear it happend to you as well. Were you 50% share holder as well? When you say expensive how much are we talking? Thanks Sadly nothing can be done without taking legal action, which is expensive and still doesn't mean you'll actually get paid.....
Good luck! Its a very painful process....... grrrrr
ExBoringVolvoDriver said:
FWIW said:
ExBoringVolvoDriver said:
Agree we need more information here although the OP says he is a 50% shareholder so not a minor one.
Minor does not necessarily mean minor . But we need detail. I feel strongly about this s
t, so should probably save comment until the morning when I m not a couple of bottles in! Gassing Station | Business | Top of Page | What's New | My Stuff