Removed to business/ director

[ccabello]

I've recently been removed from my position by my business partners, and I'm worried that they might try to take away my 33% shareholding. I'm also concerned that I won't receive my last salary. I'm not sure if I can transfer any money from the business to my account to prevent any unpaid salary. Any advice?

 

[Newchodge]

I've recently been removed from my position by my business partners, and I'm worried that they might try to take away my 33% shareholding. I'm also concerned that I won't receive my last salary. I'm not sure if I can transfer any money from the business to my account to prevent any unpaid salary. Any advice?

Do you have a shareholders' agreement?
Do you still have access to the business bank account?
Do you know the correct amount of salary that is owed to you?
How long have you been employed?

 

[ccabello]

Do you have a shareholders' agreement?
Do you still have access to the business bank account?
Do you know the correct amount of salary that is owed to you?
How long have you been employed?

Yes, we have an agreement on the company house.
I still have access to the bank account and still have the shareholder from the business
I know the amount they need to pay. I have been employed for 3yrs

 

[Mark T Jones]

Yes, we have an agreement on the company house.
I still have access to the bank account and still have the shareholder from the business
I know the amount they need to pay. I have been employed for 3yrs

Presumably that means you don't have a shareholders' agreement but are reliant on standard articles. Which are unlikely to contain any provisions around share transfer or good/bad leaver clauses (but check them out to see what they ssy)

Similarly, are there any service or employment contracts.

As a broad answer - they camt withhold your pay without good reason- and they can't take shares from you. Your shares are yours.

 

[Ozzy]

As a broad answer - they camt withhold your pay without good reason- and they can't take shares from you. Your shares are yours.

But they can dilute them if you don't have any contracts in place to prevent this...

Which are unlikely to contain any provisions around share transfer or good/bad leaver clauses (but check them out to see what they ssy)

Similarly, are there any service or employment contracts.

^^^ so do this.

 

[Newchodge]

Yes, we have an agreement on the company house.
I still have access to the bank account and still have the shareholder from the business
I know the amount they need to pay. I have been employed for 3yrs

Amongst other things you may want to look at an unfair dismissal claim.

 

[ccabello]

Amongst other things you may want to look at an unfair dismissal claim.

But as two others have more shares than me(both together have more than 50%), they are not able to disconnect me. They claimed that they were not happy with my job.

 

[IanSuth]

But as two others have more shares than me(both together have more than 50%), they are not able to disconnect me. They claimed that they were not happy with my job.

Disconnect the 2 things(as they are completely different legally)

Shares are you percentage ownership of the business

Separately you were employed as a director for which you are paid a salary - they can only dismiss you from that job by the correct methods and means. If it was for capability reasons, did they go through the correct procedures, what is your company written policy etc etc - read this https://www.acas.org.uk/capability-procedures

 

[fisicx]

There are three things:

Director, shareholder, employee.

You can be removed as a director. you just need to file the correct paperwork with CH.

You cannot be forced to sell your shares. They are independent of being a director or anything else. You will still get dividends and you can still attend the AGM and see the accounts.

You can be sacked as an employee. But the correct procedures need to followed as other posters have mentioned. Even if you are no longer employed you can still be a director and shareholder.