Director Dispute

[H8mmer]

I have a dispute with the other director (my ex wife) in our company, both have 50% of shares - mine are A class, hers are B class.
I work on the revenue stream, my ex assisted with minimal duties like preparation of returns etc. but never interacted directly with the accountant.

Our accountant has provided her with various company documentation, she is of course entitled to anything she wants regarding the business.
However, her solicitor is deliberately ramping up the animosity between us and has already come out with some claims in court that are not true, but having no pre-warning of the documentation asked for I have been unable to answer some questions on the day.

If I ask our accountant what documentation has been provided to her solicitor is he likely to answer or is there some rule that says he can't?
BTW, her request was not court ordered.

 

[Elliot Green]

There should be no reason you cannot ask for the same information be supplied to you as Director subject to it all being about the company. However, it is not clear what difference it makes if you have a handle on the numbers. Generally, a Director of a company should be up to speed on all the numbers.

 

[H8mmer]

There wont be any difference in court, the solicitor is however picking out minor things to throw mud with. Without any preparation I am unable to answer with clear reasoning on the spot. The judge IMO should be allowing for this but hasn't so far.

 

[studioJK]

Hi @H8mmer

It sounds like the key issue is who the accountant's client is. If the accountant's client is the company, it would be difficult to argue that you (presumably, as a director of company) cannot have access to the documents provided by the accountant.

Having said this, presumably you have a lawyer representing you? If so, you should strategise with your lawyer, to ensure that what you are doing or want to do doesn't adversely impact the bigger picture.

Good luck!

 

[The Resolver]

The company's accountant would be in breach of contract by virtue of a breach of the implied condition to comply with the ethical standards set out by his professional body (ICAEW (chartered and similar if certfied)) by providing information to one director alone (conflict of interest) .

I don't know what are the issues but the problem for you may be that family judges are not always as knowledgeable of the detail of oompany law. Worse, that whilst mediation is encouraged , if not practically required, in family disputes, many family mediators are also not all suficientl;y knowledgeable about company law. But mediation is clearly the way forward and it has to be hybrid family law/company law.

By and large your wife's duties to the company as director are no less simply because she is married to her co-director.

You may not want to share the detail here but you are welcome to book in for a 30 n free advice session here.