Leaving a Ltd company

[newchallenge21]

Hi all. I'm looking for some advice regarding the above.
I own 50% of the shares of a trading company, turnover around 600k p.a. In our articles of association if one of us decides to leave we have to offer the shares to the other director first. I'm unsure if they will buy them but communication between us isn't great at the moment. Is there an official letter or similar that I can give them with a timescale for a decision to be made? This has been dragging on for a while and I need to be able to move on.
Secondly, what type of company / individual should I go to for impartial advice locally regarding selling my shares and any options I have? I am of course prepared to pay for this but would prefer a one to one meeting.
Thanks in advance

 

[Scalloway]

I would suggest speaking to both an accountant and a lawyer as each will have a different perspective on the situation.

 

[Lisa Thomas]

You could always resign as a Director and keep the shares.

I would think the Company's accountants might be able to value the shares.

You will want the Solicitor to ensure any deal done is watertight.

 

[Mr D]

Usually its between the two of you what you will sell the shares for.
Not much of a chance of selling to someone else. But if you cannot agree a price then don't sell.

 

[STDFR33]

Nobody is going to buy shares in a business where the co-directors / shareholders are in conflict.

Why not retain the shares and Co tinue to receive dividends?

 

[The Resolver]

Don't resign from the Board until you have agreed a price for the share transfer since you then lose access to the company's current financial and trading data that you will need to obtain a valuation. However you might resign from working for the company.

Not all accountants provide market valuations (what people may pay for the business) just the much lower net realisable asset valuations for the books., ie what is left after a fire sale of assets and paying off creditors.

If the other shareholder feels he does not have the funds to buy your share you may be able to negotiate a buy back of the shares by the company out fo company funds. This results in your 50% shares ceasing to exist so the other shareholder becomes the 100% owner. However there is law affecting such deals so that, to avoid creditors being penalised by the reduction in company funds, such monies can only be paid out of "distributable profits" being an amount that ,in general, leaves sufficient to pay creditors and continue to pay the overheads required for the running of the business.

I advise and act in these cases either as mediator or negotiator. to help all parties reach a sensible and fair resolution. I can also arrange for a valuation. You are welcome to call me for a free 20 mn advice call when I can expand on the above..

 

[RobinBHM]

If you sell up and leave the company, make very sure you are removed from any personal guarantees relating to lease of business premises, overdrafts, loans, supplier trade accounts etc.

You dont want a knock at the door in 5 years time......