Director leaving company
Discussion
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.
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.
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
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.
Gassing Station | Business | Top of Page | What's New | My Stuff