Shareholder Rights

[Shareholder Rights]

Hi,

New to this forum so please be gentle!

My husband and I ran a business but separated nearly 2 years ago. He forced me to leave the business. He is the only director and we are 50/50 shareholders.

I have seen no dividends from the company since leaving although I know he is taking them, and legally I know I am entitled to match his.

My question is, as a 50% shareholder do I have any rights regarding how the business is run? I suspect not but am hanging on to a thread of hope. I can see the business failing as he is just not there when he needs to be (as key sales people we were in practically every day) and he is making some poor decisions (i.e. closing on days when the business makes money). Is there anything I can do legally. I hope to get my dividends via the court but the way he is going it doesn't look like the business will survive for much longer.

He is making me fully liable for any loans and as such any debts that the business has so feel I have the raw end of the deal somewhat.

Thanks in advance.

 

[STDFR33]

You need to see a solicitor ASAP.

 

[Mr D]

How does he as a director make you liable for anything?
The limited company debts belong to the company, only if you signed personal guarantees on anything can you be held personally liable.

 

[Paul Norman]

By paying dividends to one shareholder, and not the other, he would be breaking the law.

As suggested above, I would recommend a solicitor.

 

[Mark T Jones]

Go for a free legal consultation (most solicitors will offer 1/2 hour). However don’t throw good money after bad seeking a moral victory. If the business is going under there is little value shouting about your right

Said rights as a shareholder include:

• Sight of relevant financial information. Including full accounts which will show dividends paid
• Equal portion of dividends
• Rights to attend AGM
• Rights to call special meetings/resolutions which I don’t know TBH - might be best to ask on the legal forum

Your comment regarding PGs is confusing. Am I right in assuming you signed PGs as a director and haven’t cancelled them? If so then I would contact the respective lenders, clarify the situation and ask to be released from the PG. they won’t release you for at least 6 months (possibly not at all), but they should then review the facility and hopefully reduce/minimise the borrowing

 

[Sam Drury]

If your ex has been breaking the law, then a solicitors letter may be enough to get him to cough up.

You do have a right to see the accounts, which should have the dividend on there,I would start there.

Also keep a record of everything.

But don't be confrontational, it's easier for everyone and less expensive if these things can be settled without resorting to the legal process.