Director/shareholder

[Christrab]

Currently 1/3 director/shareholder with two others. Instrumental in setting up business as only one with industry knowledge. Wish to withdraw from business but have money invested. They are willing to buy me out but want no time limit on pay back time - talking years here. Whilst I still have money invested what is my position on resigning as a director and my entitlement to any dividends paid as a shareholder. I am being asked to sign to say I will resign and have no right to liabilities or assets but need some structure to get my money out.

 

[Paul_Rosser]

Do you have a shareholders agreement in place ? Usually this would cover what happens if one of the shareholders wants to exit, who they can sell their shares to, etc.

 

[Scalloway]

As a shareholder you will continue to be eligible for any dividends that are declared.

 

[Christrab]

We have a directors agreement with exit strategy and no time limit but nothing is mentioned about share and how the investment money/dividend to be managed to exit.

 

[Chris Ashdown]

You would be entitled to your share of dividends, but they may decide to pay themselves more money rather than pay dividends (probably pay more tax bu then would not have to share with you)

You would need a properly made contract abou the transfer of shares and the amount payed and when, even if paid in installments

AS you have the knowledge or had at startup will the firm continue and does it have the inhouse skills to go forward or do you expect it to fold

If the company is expected to fold in a year then better to force a closure now whilst it still has a cash value