Forfeiture of shares

[hc2011]

I was involved with a company and was given 25,000 shares a large proportion of which are unpaid. I since left the company and resigned as a director asking for my shares to be distributed to the other directors. I have just received a letter asking for the remaining money to be paid as the company has stopped trading and needs to pay its debts. I cannot pay this money and have no assetts. Where do I stand legally? What should I do next?

 

[The Resolver]

I was involved with a company and was given 25,000 shares a large proportion of which are unpaid. I since left the company and resigned as a director asking for my shares to be distributed to the other directors. I have just received a letter asking for the remaining money to be paid as the company has stopped trading and needs to pay its debts. I cannot pay this money and have no assetts. Where do I stand legally? What should I do next?

Were any of your shares transferred to other directors? Given the title you gave the thread, were the shares forfeited (presumably not else why worry but why then give that title?) How much is being claimed?

 

[hc2011]

I was given £25,000 shares but only 2% were paid. the other 2 directors have £25,000 shares each paid up.
The reason for the title is that I have heard that is what happens if you cannot afford to pay the unpaid amount, in this case over £24,000.
None of the shares have been transferred.

 

[obscure]

You used the phrases "involved with a company" and "given shares". The latter implies no payment is necessary yet your talking about money owed. You are going to get much better information if you are a little clearer on the details of the situation.

What exactly was your relationship with this company? Director, employee, other?
What exactly were the terms on which the shares were granted. Were they all transferred to you or only those that you paid money for?

 

[hc2011]

I was originally a director but resigned a couple of months ago. When the company was formed 25,000 shares were in my name. 2% was paid at the time with the rest to be paid using future dividends from the company, the company never made any money.

 

[Paul Murakami]

You need to dig out the documentation relating to when you acquired the shares. In principle, if you subscribed for shares which were unpaid or partly paid, and you're still the registered shareholder, you're on the hook if the company demands the balance payable on the shares.